Alcohol duty tax rises to go ahead

Related tags House of lords Treasury

An attempt to derail the government's inflation-busting alcohol duty escalator has failed in the House of Commons. Proposed amendments to the Finance...

An attempt to derail the government's inflation-busting alcohol duty escalator has failed in the House of Commons.

Proposed amendments to the Finance Bill which would have required the Treasury to explain its motives for the tax rises and outline their economic consequences for the industry have not been supported by the government.

The Association of Licensed Multiple Retailers (ALMR) is now calling on the government to fully explain the real reasons behind the four year-long duty rises.

ALMR chief executive Nick Bish said: "First, the government jumped on the bandwagon and let it be reported that the duty rises were designed to tackle binge-drinking.

"Then, knowing that they would not have this effect, they cynically tried to link the escalator to winter fuel payments and child poverty - even though the Treasury states it never earmarks taxes.

"Like the government's sums, this just doesn't add up. The Chancellor needs to own up that this is just opportunistic revenue-raising to cover some of his fiscal black hole."

Speaking in the Finance Bill Committee, treasury minister Angela Eagle MP said that the government keeps the effects of duty rises "under constant review".

Jeremy Browne MP, Liberal Democrat Shadow Chief Secretary to the Treasury, who tabled the amendments, rejected her statement, adding: "The minister said that those matters were kept under constant review, but that simply is not the case. If it were, the Chancellor would not have announced above-inflation increases as an escalator for the next four years.

"Even if the review finds an adverse effect on businesses and employment, the government are committed to above-inflation increases, so the matter is not under constant review at all. Damage is being done to employment. It is also being done to real communities which have their social heart removed."

Related topics Legislation

Property of the week

Follow us

Pub Trade Guides

View more