MPs elected to Beer Tax Fraud Inquiry Panel

The chairman of the All-Party Parliamentary Beer Group (APPBG) MP Andrew Griffiths launched the investigation after the Government opened a consultation into the proposed introduction of duty stamps.

The Government claims tax losses from beer duty fraud cost £500m per year and estimated that 5% to 14% of beer consumption is illicit.

In its first meeting last week the Beer Tax Fraud Inquiry Panel elected Griffiths and former Treasury minister John Healey MP to co-chair the investigation.

The 11-strong panel’s commitment is to deliver a cross-party, objective assessment of the impact of beer duty fraud and the proposed measures to counter it. It will provide a report with clear recommendations to HM Treasury by 17 July 2012.

The aims of the group are: “To investigate the nature, scale and impact of beer duty fraud in the UK and the evidential basis of HMRC’s estimates, to assess the strengths and weaknesses of HMRC’s proposals to counter this fraud, and to consider the reasons for failure of the present system and alternative recommendations.”

The panel’s first hearing is to be held on 22 May, with more on 24 May, and during June. In addition, the panel will be visiting Dover on 30 May to assess the workings of the present system of fraud prevention.

Earlier this month, the Treasury agreed to give the APPBG more time to complete the inquiry into beer tax fraud as part of the Government consultation, which ends on 25 June.

In a letter to Griffiths, minister Chloe Smith MP welcomed the group’s interest in this issue and said: “Losses to the illicit market in alcohol are at an unacceptable level and the sale of duty-evaded beer is damaging to the livelihoods of legitimate businesses.”

The panel is:

Andrew Griffiths MP, Con, Burton-on –Trent, co-chair
Rt Hon John Healey MP, Lab, Wentworth & Dearne, co-chair
Marcus Jones MP, Con, Nuneaton
Nigel Mills MP, Con, Amber Valley
Rt Hon the Lord Dholakia, PC, OBE, DL, Lib-Dem
The Lord Kennedy of Southwark, Lab
Stephen Hepburn MP, Lab, Jarrow
Mike Hancock MP, Lib-Dem, Portsmouth South
Brandon Lewis MP, Con, Great Yarmouth
Thomas Docherty MP, Lab, Dunfermline & W Fife
Justin Tomlinson MP, Con, North Swindon