Beer Duty Escalator

Debate between Andrew Griffiths and Roger Gale

Thursday 1st November 2012 Commons Chamber

[Andrew Griffiths]

Thank you, Madam Deputy Speaker. What I would say to the hon. Gentleman is that 95% of all Scotch whisky is exported. In the UK, 87% of all the beer that is drunk in this country is brewed in this country. Beer is a great British manufacturing success story, which is why we need to support it.

[Sir Roger Gale (North Thanet) (Con)]

Shepherd Neame, a Kent family brewer, and Thorley Taverns in Margate are both major employers in one of the areas of highest social deprivation in the south-east. They are both under threat, paying huge amounts of their revenue in tax while companies such as Starbucks pay virtually nothing at all. Putting the beer duty escalator to one side, I remember going to see John Cope—now Lord Cope—when he was a Treasury Minister about 20 years ago, and our parliamentary delegation demonstrated then that the more we tax, the less revenue we take in the end. Is that not the nub of this argument—it is counter-productive?

[Andrew Griffiths]

I agree completely with my hon. Friend. The point about an escalator is that we stop when we get to the top. We have reached the top of the escalator and we are in danger of going off the edge of a cliff. That is why we must do something about the beer duty escalator.