Beer Duty Escalator

Debate between Charlie Elphicke and Richard Fuller

Thursday 1st November 2012 Commons Chamber

[Richard Fuller (Bedford) (Con)]

I very much welcome this debate and would like to draw attention to two aspects. I want to call for the economic and social impacts, both of which are equally important, to be covered in the review.

On the economic impact, there is the principle of the automatic above-inflation tax increases enshrined within the escalator principle. I shall address myself directly to the Minister, who is new to his post. I do not wish to test his mettle today, but he will be keen to make an impact so I ask him this. What ethics lead to a Government’s presuming that they should increase taxation—automatically, year on year—on such staples of life as beer and fuel? I can think of no more regressive taxation than to continue with above-inflation increases on those items.

We have already had a debate on the automatic fuel duty escalator; I am sure that the Minister heard the strong voices of those on the Government Benches arguing that the Government should abandon that policy. The same applies to beer duty. Many hon. Members have talked about the economic impact of the brewing sector in their constituencies. My constituency of Bedford is home to the largest family-owned brewery, Charles Wells, maker of Bombardier beer. What could be more patriotic than drinking Bombardier beer on St George’s day—or, indeed, any other day of the year?

Brewing is now taxed at 50% of its turnover. A 50% tax on brewing turnover will almost certainly tax our brewers out of existence. This is not an issue that the Treasury can avoid, and that is why so many hon. Members have spoken in favour of the motion.

[Charlie Elphicke (Dover) (Con)]

Will my hon. Friend give way?

[Richard Fuller]

I will not, if that is all right, because time is limited.

I would like to mention the social aspect of pubs. As part of “MP in a pub” week, which must be one of the easiest campaigns to organise that I have heard of, I met Nickie and Roger McGlory at The Half Moon. I am sorry for the impact on the profitability of The Half Moon during my session there! I have also spoken to Nigel and Sue Anstead at The White Horse, who, every single week, do something to support local charities and endeavours. This Saturday, many of us will be joining Paul Davies at The Cricketers Arms as Bedford Blues rugby club gets ready to thrash Newcastle in a very important game. Whether it has to do with sports or charities, pubs are an essential part of what we do in our communities.

The vital point, as several hon. Friends have said, is the role of pubs in ending pre-loading. When the Minister deals with this issue, will he also consider the imposition of minimum pricing such that the health benefits can more than outweigh the reduction in revenues from scrapping the beer duty escalator?

European Union Bill

Debate between Charlie Elphicke and Richard Fuller

Monday 24th January 2011 Commons Chamber

[Charlie Elphicke]

The shadow Minister knows from our discussions on clause 18 that it is not possible to do that. Nevertheless, were he to become Minister in future and find the Act tiresome in holding back the floodgates of his Euro-enthusiasm and desire to embrace the greater Europe, he could dispense with the Bill by repealing it. However, he would take a political hit in doing so, because he would be taking away from the British people their right to have a say on the treaties that would follow. Therefore, he would have to be pretty forthright with the electorate in an election manifesto. If he was not, he would be open to the questions and ire of a large section of the British public who would regard that as an issue of concern.

Without further ado, it is right that I discuss new clause 9, which was tabled by the Leader of the Opposition, the shadow Foreign Secretary and the shadow Europe Minister. As far as I can see, it proposes a total watering down of everything in the Bill. I have been told by the Clerks that I am not allowed to describe it as a wrecking amendment, but I believe that I am allowed to say that it would, in my humble opinion, wreck the Bill, as far as its purpose and intent are concerned.

[Richard Fuller]

Does my hon. Friend agree that new clause 9 demonstrates that the Opposition have not learned the lessons from when they duped the electorate about the proposal for a referendum? In the new clause, they seek to hide the decision-making authority in a committee, but we do not know who the members would be, in what proportion they would be drawn from either House, whether all of them would be elected or whether they would be whipped. In short, it would lack the clarity that the British people want on such a decision about their future in relation to the European Union.

[Charlie Elphicke]

My hon. Friend makes exactly the point that concerns me most. New clause 9(5) states:

“The Committee shall consist of no more than 19 Members”—

19 great and good—

“drawn from both Houses”.

But would it include my hon. Friend the Member for Stone (Mr Cash), who is so learned and knowledgeable about European matters? Some future Government, operating that selection mechanism, might find that his services were not required, that he was more trouble than he was worth, and that he would talk for too long—perhaps for longer than an hour in Committee—and tie up everyone. In such a manner, they might not include him. I, however, can think of no Member who knows more about the matter than he, except perhaps the hon. Member for Luton North.