Cautious welcome for new Government

Trade chiefs have given a cautious early welcome to news of the new Conservative/Liberal Democrat coalition Government.

Details continue to emerge about the form of the new administration, but senior Lib Dems have already been confirmed in key Cabinet posts and an emergency Budget is reported to be due within 50 days.

Paul Smith, chief executive of late night trade body Noctis said the group had many productive conversations with the Tories in the last 18 months, adding "they're very happy with the work we are doing as an industry".

He said the group's "big social norms" project — which focuses on positive messaging through advertising — had been greeted with particular enthusiasm from senior Tories.

"It's good to hear the personal responsibility agenda being reiterated by the Conservatives. There has been a lot of nannying by Labour over the last 13 years.

"We want to work with Government and don't want to be legislated against at every possible turn."

But he sounded a note of caution: "It's difficult to know how conversations we had before the election will translate now.

"We've got to be as positive as we can be, barring concerns over Conservative plans on the late night levy, we think there is scope for us to work very positively with the new Government."

BII chief executive Neil Robertson said he was encouraged by the news of the coalition, but remained "fairly sure that our industry and its issues will be lower down the priority list."

"I'm still of the view that this new arrangement of political workings will mean more consensus and that is good because is should curb the worst excessess of knee-jerk reactions to Daily Mail headlines."

He also called for the new coalition to take a "considered view on the impact of taxes" in the upcoming Budget.

"I hope they remember there is a law of diminishing return when it comes to increasing duty levels. If they put up duty to such an extent that thousands lose their jobs they will then lose out on national insurance contributions."

Association of Licensed Multiple Retailers chief executive Nick Bish welcomed the end to uncertainty and the five-year fixed term Parliaments reportedly favoured by the new Government.

"That gives some sort of certainty and I think at the moment that would calm the markets. There's a robust majority, there's a strong determination to address the deficit and they have five years to do it."

Bish said it was too early to say how the new Government would approach issues related to the industry. "We look with interest and hope for the best," he added.

British Beer & Pub Association director of communications Mark Hastings said: "We now have a great opportunity to take forward the industry agenda with a new Government and new MPs; to play a constructive role in developing and delivering positive solutions in critical policy areas such as the economy, jobs, tax, community and health and to proactively place our industry on the front foot."

Tories and Lib Dems — where they stand on pub issues​

Areas of agreement​

• Banning below-cost alcohol sales

• Exempting venues with a capacity under 200 from needing a licence for hosting live music

• No rise in National Insurance contributions

• Granting automatic rate relief

Areas of differences​

• Alcohol tax: the Tories would raise taxes on drinks "linked to anti-social behaviour", although they would reverse Labour's planned 10%-above-inflation alcohol tax hike. The Lib Dems would review the "ill-thought-through" alcohol tax system, including the beer duty escalator, so it targets bingeing but not responsible drinkers and pubs.

• Licensing: the Tories want to "overhaul" the regime, giving greater powers to police and councils to remove licences, doubling maximum fines for underage sales and charging more for late-night licences. The Lib Dems, in contrast, have accepted that the system is basically best left alone, although they want licence reviews for every underage sale.

• Beer tie: the Conservatives say the industry should have a chance to implement self-regulation by June 2011 before enforcing a statutory code. The Lib Dems have wide-ranging plans, including a statutory code to ensure tied tenants aren't worse off than free-of-tie, and asking the Competition Commission to probe limits on pub ownership

• More to come later.​