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Alcohol prices 'could rise by 10%'

12:01am Saturday 21st November 2009

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Alcohol prices could rise by 10% next year because of tax increases, the head of a major brewer has said.

Stuart MacFarlane from AB InBev UK, which owns brands including Beck's, Stella and Budweiser, told The Grocer the majority of price rises in 2010 would come from "Government meddling".

From January, VAT will go up by 2.5% and in April alcohol duty will go up by 2%.

Mr MacFarlane said the drinks industry could be hit by further increases in the pre-budget report next month and tax could rise yet further if a new Government comes in next year.

He said: "The Government is hindering a sustainable and profitable beer industry. I have gone from being concerned to angry.

"The Government's thinking is not joined up. Are we policing underage drinking on the streets enough? No. It should better enforce laws already in place."

Last month campaigners called for alcohol prices to go up in a bid to persuade people to drink more moderately.

Alcohol Concern urged the Government to consider higher duty on stronger drinks and charges of at least 50p per unit.

It was backed by the British Liver Trust (BLT), which said drink-related deaths had trebled in the past 25 years and a price clampdown was the only way to stem the tide.

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