Beer Duty Escalator

Debate between Andrew Griffiths and John Leech

Thursday 1st November 2012 Commons Chamber

[Andrew Griffiths]

Thank you for reminding me of my obligations, Madam Deputy Speaker. I will come quickly to a conclusion.

My hon. Friend the Member for Shipley (Philip Davies) makes two important points. First, supermarkets have the ability to force brewers to include in the price paid for the beer any increases in duty, whereas publicans, who tend to run small businesses, do not have that opportunity. Secondly, supermarkets use their bulk buying power to drive down the price and use alcohol as a loss leader, which disadvantages pubs.

[Mr John Leech (Manchester, Withington) (LD)]

Will the hon. Gentleman give way?

[Andrew Griffiths]

I will not; I am going to finish my speech if I may.

The reality is that most pubs get 65% of their income from the sale of beer. That is why beer duty—rather than duty on wine, spirits, cider or anything else—is so important. Publicans, those small businesses in all our constituencies, rely on selling beer, and the 45% increase in duty that we have seen is simply unsustainable.

This is an opportunity. A fair taxation system for beer would help to drive growth, and if beer were given a fair break, it would challenge the industry to find ways of providing growth and employment, particularly for young people. I remind the Minister that some 2,370 people are employed in the beer and pub industry in 78 pubs in his constituency, including at the fabulous Bird’s Brewery in Bromsgrove of which he will be aware. A study by Oxford Economics showed that scrapping the beer duty escalator would save 5,000 jobs in the first year alone, and stop the closure of hundreds of pubs in all our communities. This is a huge opportunity to bring balance and fairness into the duty system, and to support our pubs and breweries.

I thank the House for taking such an interest in the debate. The Minister has a perfect opportunity today to demonstrate that the Government understand the pressures on hard-working families and do not want to penalise them by over-taxing the great British pint of beer. This is a great opportunity for the Minister to be the man who saves Britain’s brewing industry, protects the nation’s pubs and saves the great British pint. Scrap the duty!