Christopher Pincher Speaks for Pubs in the Beer Duty Escalator Debate
Tamworth’s MP, Christopher Pincher, spoke up for local pubs in the beer duty escalator debate in the House of Commons last week.
The debate led by Andrew Griffiths, MP for neighbouring Burton upon Trent, called for a cut in the amount of tax consumers pay on beer. In 2008, the Labour government introduced an automatic annual “escalator” which increases the price of a pint by 2% above inflation each years. This has seen the tax on beer increase by 42% in four year. As a result, sales of beer have declined (by 5.6% between July and September alone). The government’s own estimate suggests a fall in revenue for the Treasury if tax on beer continues to rise.
Mr Pincher said, “The number of pubs that have gone to the wall and are going to the wall is increasing. As a result, revenue to the Exchequer is falling. Does he (Mr Griffiths) agree that the beer duty escalator is not simply raising money? It is losing money for the Exchequer.”
Mr Griffiths responded, “My hon. Friend has put his finger on the nub of the problem. I want to remind the House that when the then Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), introduced the beer duty escalator he said that, “as incomes have risen, alcohol has become increasingly more affordable”…In order to ensure that alcohol duties keep pace with rising incomes, alcohol duty rates will increase by 2 per cent above the rate of inflation”.
Mr Pincher later commented, “The British pub is not only an iconic British symbol but is integral to the social lives of many of the hard working people. The pub industry adds £21 billion into the British economy and supports thousands of jobs.
“With more pubs closing each week and the amount we pay for a pint increasing we should act to save jobs, keep these social hubs alive and keep our British icons. A freeze in the beer duty in the 2013 Budget would save over 5000 jobs and 16,000 over the next three years whilst increasing venue for the Treasury.”
