Government says no to duty cut

The government says it has no intention of cutting duty on beer despite public support for an end to its current efforts to tackle the rising tide of smuggled booze through a random search and seizure policy.

A campaign launched this week against the government policy by tabloid newspaper The Sun has called for an end to searches carried out on holidaymakers, claiming that they are heavy-handed and inappropriate. The campaign follows a court case this summer which questioned customs officers' powers.

Trade leaders claim that if officers can no longer use these powers to fight the flow of bootlegged beer into the UK the government has no option but to cut duty to address the problem.

But a spokesman for the Treasury, which is responsible for the government's duty policy, has refuted claims that it will be forced to cut duty rates on beer, saying it will not be changing its current policy despite the public outcry.

He said: "Cutting duty is not the answer. Nothing has changed on that. Customs is continuing to cut down on smugglers."

Stuart Neame, vice-chairman of Kent brewer Shepherd Neame, who is an outspoken supporter of duty cuts, believes the only way to end smuggling is to bring the UK's duty rates in line with Europe.

He said: "The only way to stop beer coming in is to get our duty rates closer to those in Europe. Britain may be an island but we cannot stand against the tide."

In the recent high court case, which Customs is appealing against on November 2, it was ruled that Customs officials had no right to randomly search passengers and confiscate their belongings and cars. The case ruled that passengers would no longer have to prove their purchases were for personal use and Customs would have to have "reasonable grounds" for suspicion.

The Telegraph reported that in one recent case, Pam Ellis, a 63-year old pensioner, was left stranded on her own in Dover when she was ordered off her coach tour and had her goods confiscated by customs.

A spokeswoman for Customs and Excise said: "We have adapted our behaviour to take into account the high court case. Smuggling is putting smaller businesses out of business. We don't seize from innocent shoppers but we do make mistakes."

The policy has even sparked intervention by European Union Commissioner Fritz Bolkestein who has asked the government to clarify its policy. The government is expected to respond to his concerns next month.