Pubs minister admits below-cost plan is not 'perfect'

Community pubs minister Bob Neill has admitted the government's plan on below-cost sales is not a "perfect solution" and acknowledged the pub industry would have "loved the government to have gone further".

Speaking at a Publican Directors Club dinner last night, sponsored by Coca-Cola Enterprises and hosted by The Publican​, Neill reiterated the controversial duty plus VAT formula was a "first step".

"It may be there are other things we can think of," he said. "But it's quite difficult to find a means of measuring cost."

He added: "The objective is a clear one. To prevent the worst of the under-cutting. It won't prevent all under-cutting, I won't pretend it will.

"I know the industry would have liked us to have done more. But colleagues in other government departments are already willing to see if we can find a model that can build from that."

Neill, a minister at the Department of Communities and Local Government, also admitted to guests there was "absolutely no budget" to help pubs.

But he added: "We can be a focal point and a champion and if there are barriers then let's see what we can do."

He was also asked whether he thought the industry communicated its message well. But Neill suggested "things need to be a little more focussed" with the trade's lobbying efforts.

Guests, including many senior level industry executives, also pushed Neill hard on the issue of beer tax at the Central London event.

He responded he was "not unsympathetic" to the industry's pleas, but it was a matter for the Treasury.

On the beer tie, Neill said: "You know you have the voluntary codes coming, let's give that a bit of time. We'll keep that under review, I think that's probably the best approach at the current time."

Neill also praised his Lib Dem colleague Greg Mulholland on a number of occasions, saying he "lobbies very well" on behalf of the industry.