Alcohol Duty

Debate between Alun Cairns and James Cartlidge

Monday 19th December 2022 Commons Chamber

[James Cartlidge]

I am glad that the right hon. Gentleman supports the principle of the reform package that will come into place next August. I hope Members across the House can do so. The cost obviously depends on what decision is made in the Budget next year. That is a matter for the Chancellor at the time. We know that that will be on 15 March, so there is not too long to wait.

The right hon. Gentleman made the point that it was not necessary to leave the European Union to make these changes. To be clear, EU law does not allow member states to differentiate beverages on qualitative characteristics such as whether the product is on draught. EU law actively discourages any attempt to support the on-trade through the duty system. That is also true for a system based on ABV; by and large, that would have been very difficult as well. The fact is that this is a radical reform and it has been made possible by Brexit.

[Alun Cairns (Vale of Glamorgan) (Con)]

I declare an interest as the chairman of the all-party parliamentary beer group, and someone who enjoys much of what we have been discussing. May I at least warmly welcome my hon. Friend’s statement? This will provide significant certainty to an industry that has experienced significant challenges over recent times, from the impact of weather on crops, to the impact on energy prices on the back of the fallout from covid. So this is a much needed platform on which the industry can build a strong future. It is looking forward with enthusiasm to the differential draught beer duty. That is an important principle. Come the Budget in March, will the Minister consider going much further that the 5% that has already been promised? The principle, and the Brexit dividend, can bring significant benefits to our pubs and beer industry across the country.

[James Cartlidge]

I am extremely grateful to my right hon. Friend for his comments. He has become the chairman of the all-party beer group, but we should remember the work of the former chairman, my hon. Friend the Member for Dudley South (Mike Wood). He cannot speak as he is a Whip, but he put in place all those sessions lobbying MPs and Ministers and making the case for beer. Much as we enjoy that, it is a major employer in this country. My right hon. Friend makes an important point about differential duty. To put that in context, the 5% cut to cider duty will be the biggest cut to cider duty since 1923, so it is significant. Of course I cannot from the Dispatch Box make decisions for the Budget next year, but it is not too far away and I am sure there will be plenty of chances for colleagues to engage up to then.