Pints Are Better In Pubs

As a regular pub-goer, I value local boozers. I don’t consider myself an alcoholic, but I also have no objection to the occasional binge. So it concerns me when I hear that minimum pricing for alcohol is going to unfairly hit pub finances. You see, supermarkets pay no V.A.T. on food but pubs have to pay 20%! Not sure what the logic is in that other than perhaps governments have a vendetta against pubs. So supermarkets will compensate for any alcohol tax rises (e.g. minimum prices per unit) by cross-subsidising, i.e. dropping prices on food and soft drinks. This means that an even greater disparity will be created between supermarket prices for alcohol and corresponding pub prices. As much as governments want to reduce alcohol-related crime, disorder and health problems (and I do appreciate the well-meaning intentions of alcohol tax), I can’t help thinking that minimum pricing won’t affect supermarkets nearly as much as intended, meaning that people will probably stock up on booze at home, then get pissed before leaving the house for a night out where they may have less to drink at the pub but still be just as disorderly as before. So pubs will suffer and there will be little to show for it. If alcohol must be so heavily taxed, governments have to ensure that supermarkets do not cross-subsidise; that way booze prices will be competitive wherever you buy from.

 

Way Too Late

Liberal Democrat leader Nick Clegg has finally apologised for reversing his manifesto pledge of not raising tuition fees; he hasn’t said that the current policy of charging the extortionate amount of £9,000 per year is a bad policy, just that he originally made a promise that couldn’t be kept. So that’s okay then; he says he won’t break any pledges again and we’ll just take him at his word … I think not. As far as I’m concerned, Clegg lost all credibility as soon as did a deal with the devil, i.e. formed a coalition with the Conservatives. After that it was no surprise that other moral principles fell by the wayside. Former leaders Charles Kennedy and Menzies Campbell were able to vote against the fee rise along with 21 other Lib Dem M.P.s, but Clegg just couldn’t manage to honour his word because the power of government was too important to him. This apology is a waste of time: the Lib Dems will get trounced in the next general election and will only stand a chance of recovering once they’ve got rid of Clegg as their leader and put a great deal of distance between themselves and the Conservative Party. And students, I fear, will have to suffer long-term debt for many years to come.

 

Privatisation And Tax

In 2013 the government is making it compulsory for companies to provide private pensions to everyone; individuals will be automatically subscribed (thereby receiving monthly deductions from their wages) unless they opt out. This has the long-term intention of phasing out state pensions, allowing the government to save money. But will people who take up the offer of a private company pension - or rather, don’t make the effort to opt out - therefore pay less tax as it will no longer be required to pay for the state pension scheme? … Doubtful. The Tories tend to only cut taxes for rich people and businesses. The extra money saved will probably be re-invested into ‘infrastructure’ projects that affect national and international trade rather than local communities. Rather than saving hard-working people a bit more cash, we will instead see further developments of a third runway at Heathrow and high-speed rail that will demolish a great deal of countryside. Don’t be deceived by David Cameron saying that he will stick to his manifesto pledge of no third runway; the two year consultation period would allow him to reconsider his position by the time the next election (and new manifesto) comes around. There is a chance that I’m being overly cynical, I do have bouts of that! But I don’t like the way that pensions are being forcibly privatised, it smacks too much of Thatcherism.

 

Really?

No long rant this week, just simply this:
When the death of one of the Queen's corgis makes the news headlines, we really are in trouble!