Treasury rejects attempt to reassess escalator duty

Tabled amendment to Finance Bill falls on deaf Government ears

An attempt to get the Government to explain its true motives behind the alcohol duty escalator has failed.

Lib Dem shadow chief secretary to the Treasury Jeremy Browne tabled an amendment to the Finance Bill — which enshrines Budget decisions in law — calling for the Treasury to scrap the escalator unless a review is carried out into why the policy is in place.

Chancellor Alistair Darling enraged the trade when he promised 2% above-inflation alcohol duty rises from 2009 to 2012 — following 4p on a pint this year.

Treasury minister Angela Eagle MP said that Government already keeps the effects of duty rises "under constant review".

But Browne said: "If that was so, 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 is committed to above-inflation increases, so the matter is not under constant review. Communities have had their social heart removed."

Association of Licensed Multiple Retailers chief executive Nick Bish pointed to the Government's £2.7bn cash injection after the 10p tax rate fiasco and said: "We know the Government is not afraid of U-turns. It needs to do more to protect the great British pub. That means rescinding its crippling escalator and halting opportunistic stunts, such as extra minimum-wage increases, to salvage political cock-ups."

The MA is calling on licensees to join its Fight the

Hikes campaign — see www.morningadvertiser.co.uk.