Mulholland anger as beer tax concession is rejected

Save the Pub Group chairman Greg Mulholland MP has accused the government of heaping "misery on the industry" after refusing to fight for differing duty levels for draught beer.

Mulholland and Colin Breed MP contacted the Treasury proposing a lower rate of duty for draft beer in light of competition from rock-bottom supermarket pricing.

But the response, from exchequer secretary to the Treasury Sarah McCarthy-Fry MP stated 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".

The Treasury went on to attribute pub closures to "shifting tastes and increased choice in leisure pursuits", rather than supermarket competition, listing home entertainment, coffee shops, and a general reduction in household expenditure as other factors.

The response also states that there could be problems with indirect discrimination against imported beer should a change be made, since products such as this are sold more widely in supermarkets than pubs.

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."

McCarthy-Fry's letter added that any change in law made would require unanimous agreement between EU finance ministers.