More than 100 MPs support beer tax curb

There is rapidly growing support in Parliament for urgent calls to freeze the tax on beer in the Budget next week.

Over 100 MPs from all parties have now signed a motion in Parliament tabled by Burton MP Andrew Griffiths, calling on the Government to think again over plans for a huge, seven per cent rise in the tax on beer.

The British Beer & Pub Association, along with CAMRA (Campaign for Real Ale) and SIBA (Society of Independent Brewers), have led concerns over the Government's Beer Tax policy. The BBPA says that with Beer Tax up 26 per cent since March 2008, a freeze is now vital to restore growth in brewing, pubs, and the UK hospitality trade, and to boost the wider economy.

In recent days, the Association has released the results of survey showing that almost one million UK jobs (980,000) depend on the brewing and pub trade. At the same time, pubs continue to face pressures, with new figures showing that last year, 25 British pubs closed every week with the loss of an estimated 13,000 jobs.

The BBPA says that with the right tax policies, the sector could help lead the economy out of recession. Scrapping the duty escalator in March would save over 10,000 jobs, mostly in pubs, according to analysis by leading economic experts, Oxford Economics. This is because most beer consumed in Britain is brewed in Britain, and is predominantly enjoyed in the high value-added pub trade, rather than bought from supermarkets. A freeze would also generate an extra £40 million in tax revenues for the Government, and help stem the tide in pub closures.

Survey results for the BBPA last year revealed public support for lower taxes for lower strength drinks, and this is backed up by a new Populus Survey among drinkers who consume above recommended guidelines. In total, 76 per cent of those surveyed support the idea of charging lower levels of taxation on lower alcohol drinks, to make them cheaper and therefore more attractive to drinkers. Those surveyed were also asked which drink someone who wants to get drunk is most likely to drink; 10 per cent said beer, 7 per cent said wine and 78 per cent said spirits.

Conservative MP Andrew Griffiths, who tabled the Early Day Motion and whose Burton constituency has over 4,500 jobs that depend on the beer and pub trade, comments:

"This is proof that there is growing agreement amongst MPs that increasing duty on beer in the Budget would have a damaging impact on brewers and pubs alike. We hope that the Chancellor will take note of this cross party demand for a fair deal for beer."

Brigid Simmonds, BBPA Chief Executive, adds: "With pubs at the heart of every community and beer a vital part of our manufacturing sector, the growing concerns of MPs over government tax policy should be heard. Beer and pubs employ almost a million people and could be helping the economy to grow. If the Chancellor were to freeze beer duty next week, it would be the clearest possible signal that when it comes to helping small business - he really does mean business."