Beer Duty Debate: Treasury minister Sajid Javid "can't make commitments" to scrap escalator

The debate, secured by MP for Nuneaton Marcus Jones and held two weeks before the Budget, saw MPs from all parties put forward their case against the escalator, which has increased duty on beer by 42% since 2008.

Javid praised MPs for their attendance at the debate and assured them that the Government “understood the importance of the issue”.

However, he said that scrapping the escalator would cost the Treasury £35 million next year, and £70 million the following year, reiterating what he said at a previous debate on 1 November 2012.

He added that all taxes are kept under review and that the quality of today’s debate further enhanced his understanding of the importance of the issue among MPs, licensees and pub-goers across the UK.

“I can’t make any specific commitments to action – we will save that for the Budget,” said Javid.

“But I am listening, and I understand the importance of this issue. I hope that I have been able to offer the same reassurance (as in previous debate) that we are supporting pubs and breweries.”

Javid said that “changing consumer behaviour” had contributed to pub closures over the last decade but insisted that measures such as small business rate relief, small brewers relief and a reduction in corporation tax show how the Government is supporting pubs and brewers.

The Budget takes place on Wednesday 20 March.