MPs back pro-pub beer tax call

MPs are backing the call for Europe to allow the UK to set a lower rate of duty for draught beer sold in pubs.

The European Commission will this year consider reviving the directive banning members states from having different alcohol duty rates based on how products are sold.

Fifteen MPs to date have signed an Early Day Motion (EDM) from John Grogan MP saying they are "especially pleased" the Commission indicated it's "open to any novel and constructive suggestions for their improvement".

The EDM "urges the Government to promote the removal of the present prohibition on such differential taxation to the European Commission and to other Member States".

It came after the Campaign for Real Ale said it would write to MPs urging them to back the campaign.

Mike Benner, CAMRA chief executive, said the change would be "a golden opportunity for the government to address the disparity between supermarket and pub prices, a problem directly associated with pub closures".

Fair Pint urged pub companies to ensure any benefits from a different duty regime are passed directly onto tenants.

Fair Pint campaigner Steve Corbett said: "Moves to protect the position of draught beer by allowing for beer duty to be lower on draught beer would be welcome. However, as everyone in the trade knows, beer duty is not paid by retailers but is a cost which is absorbed by brewers and importers.

"Reductions will only help pubs to stay open if there is an explicit guarantee that any reductions are passed on in full to publicans and publicans see a real reduction in beer prices."