Lowering duty on draught beer 'not possible'

The Government has once again ruled out reducing duty on draught beer to help struggling pubs.

It came in a letter to campaigning MP Greg Mullholland from Treasury minister Sarah McCarthy-Fry.

She said: "Our legal advice is clear that, as EU law stands, differential rates of alcohol duty cannot be applied to beer depending on where it is sold or how it is packaged."

She said a change in law would require unanimous agreement among EU finance ministers.

She said was "unlikely" and could lead to "indirect discrimination" against some EU brewers; for example, because imported beer is more likely to be sold in supermarkets.

Mulholland said: "Ultimately all this response amounts to is the Government telling us they are not even willing to consider changing the law and taxing draught beer at a different level to other types.

"They honestly seem to never miss a chance to heap more misery on the industry and their claims that 52 pubs a week are shutting down due changes in taste just come across as naïve and out of touch."

Fellow MP Colin Breed, who also wrote to the minister, said: "While tastes have changed, they have not changed radically enough to close fifty-two pubs each week.

"The letter mentions that people are 'reducing household expenditure as a result of the economic downturn' — this is the precise point our letter intended to address.

"Differing draught beer tax levels would reduce prices and make the pub more attractive than supermarket offers."