CIDER maker Robert Fitchett admitted he was surprised after the drink was hit with a 10 per cent above inflation hike in the Chancellor’s Budget.
Mr Fitchett, who runs the Upton Cider Company near Didcot with his wife Val, was confident the company would not be too badly affected, because of its small size.
However, he warned that other cider makers across Britain could “really struggle”.
Chancellor Alistair Darling announced the rise in his Budget speech at Parliament on Wednesday.
Mr Fitchett said: “It is a big rise and there will be additional increases for makers of strong cider.
“By definition, a traditional cider has to be more than 5.9 per cent ABV or it won’t keep. It is a preservation technique.
“Obviously, this is quite concerning.”
The company was formed in 1983 when Stan Lynch started making his own cider on his farm.
Following his death in 2008, aged 86, the couple took over the running of the business. Mrs Fitchett had served an apprenticeship under Mr Lynch.
Mr Fitchett added: “We are a small organic company and we should be okay.
“We sell out most years, but if it means we have to keep our farm shop open a bit longer this year to hit the same targets, then so be it.
“That said, there will be a lot of cider makers around the country who could really struggle following this rise.”
From midnight on Sunday, duty on cider will rise by 10 per cent above inflation. The price of a bottle of cider will rise by 9p, while a litre of cider will cost an extra 5p.
A one per cent increase in duty on beer, wine and spirits will come into force at the same time, adding 2p to a pint, 10p on a bottle of wine, and 36p to a bottle of spirits.
Alcohol duties will rise by two per cent above inflation for two further years from 2013.
Yesterday, the chairman of the National Association of Cider Makers said the industry had been "singled out”.
Henry Chevallier said: “We are at saturation point on the duty on alcohol – even for a success story like cider. This dramatic increase could well reverse the growth we have generated in recent years.
“Depending on how retailers deal with the duty, this will add significantly to what consumers pay for a pint of cider.
“We have no control over the retail price of cider, but it could mean up to 10p a pint.”
Meanwhile, Witney MP David Cameron yesterday criticised the cider plans – but backed an increase on high-strength varieties, which he said had “as much relation to an apple as I do with Gandhi”.
The Tory leader was in Devon, the heart of cider country, where he criticised the 10 per cent hike, but supported taxing high alcohol-content brands such as White Lightning.
Asked about the increase in tax on cider while on a visit to Exeter, Mr Cameron said: “The Government has made a mistake.
“They don’t understand the West Country, they don’t understand this part of our country, and they’ve got it wrong.
“Of course we need a higher tax on the dangerous high-strength things like White Lightning, which have as much relation to an apple as I do with Gandhi.
“But proper cider that people like to drink down the pub, we shouldn’t be having a great tax hike on that.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel