Government will not cut beer duty

The Government has once again confirmed it will not reduce beer duty in an attempt to stop bootlegging.

Paul Boateng, the financial secretary to the Treasury, denied a cut in excise duty would prevent bootlegging and said the Government instead preferred to target smugglers.

Speaking on the Pub Channel's Insight debate programme, Mr Boateng said: "Our historic approach to the taxation of alcohol isn't one that we are going to move away from.

"There's no quick fix solution to this. What there is, is a steady and determined response to the scale of the problem and a determination to bear down year on year to cut down on bootlegging."

The Government claims that since 170 extra customs officers were employed in 2000, smuggling of beer has almost been eliminated and smuggling of wine and spirits has been halved.

But the trade believes bootlegging has gone underground and although the "white van man" may have disappeared, smuggling has not been eliminated.

The number of people making "legitimate" trips to France to stock up on cheap alcohol has also increased.

"All the people who come here are bootleggers. They are taking something back for someone else," said Dave West, who owns the Calais cash and carry, Eastenders. "But I would say as many as 50 per cent of them are making a living from it."

The Government's Customs and Excise practices are being investigated by the EU. It believes UK Customs officers are too "heavy-handed" and smuggling would be better tackled by harmonising duty across Europe.

The trade will continue to lobby for a cut in duty in the next budget, which has been postponed until April 17 due to the death of Chancellor Gordon Brown's baby daughter.