Oral Answers to Questions

Andrew Turner Excerpts

Tuesday 29th January 2013 Commons Chamber

[Sajid Javid]

My hon. Friend is absolutely right to raise this issue and the help it brings, particularly with regard to apprenticeships. In fact, in the constituency of the hon. Member for Bethnal Green and Bow (Rushanara Ali), there has been a more than 100% rise in apprenticeships because of this Government.

[Mr Andrew Turner (Isle of Wight) (Con)]

14. How much revenue will accrue to the Exchequer from the beer duty escalator in each of the next three years.

[The Economic Secretary to the Treasury (Sajid Javid)]

The Government have inherited plans to increase alcohol duties by 2% above inflation until 2014-15. The extra 2% is forecast to increase beer duty receipts by £35 million next year and £70 million the following year.

[Mr Turner]

What proportion of that money is collected through pubs? Is it a relatively small amount? Will my hon. Friend consider removing this tax from pubs, many of which are central to community life in our towns and villages?

[Sajid Javid]

My hon. Friend is right to raise this issue, and he has contributed to many debates on it in this House. Making the change would mean lost revenue, and we would have to find another way to cover that loss. He may find it useful if I point out some Government measures that have helped pubs, such as the changes in the annual investment allowance, the cut in the small profits rate of corporation tax and the extension of small rate relief holiday.