Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Gary Streeter Excerpts
Tuesday 10th May 2011

(13 years, 7 months ago)

Commons Chamber
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Gary Streeter Portrait Mr Gary Streeter (South West Devon) (Con)
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13. What recent representations he has received from the licensed trade on alcohol duty.

Justine Greening Portrait The Economic Secretary to the Treasury (Justine Greening)
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I met a number of stakeholders ahead of this year’s Budget, including the all-party group on beer and the British Beer and Pub Association. We carried out a review of alcohol taxation last summer and members of the licensed trade contributed heavily to that.

Gary Streeter Portrait Mr Streeter
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I thank the Minister for her answer. Given the importance of the licensed trade to the economy and our culture, particularly in regions such as the west country, where tourism is high, is it not now time to seek to reduce alcohol duty on served drinks and to increase it on cheap booze sold by supermarkets?

Justine Greening Portrait Justine Greening
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My hon. Friend is absolutely right to raise that issue. In fact, it is part of the rationale behind tackling problem drinking. One way we have sought to do that is by introducing the limits on the below-cost selling of alcohol in supermarkets. That will be done by a formula of assessing duty plus VAT as the below-cost level. My hon. Friend is also right to point out that we need to do what we can to support pubs, which are the lifeblood of many local communities. They will also benefit from the various packages of measures we have brought forward to support small businesses, including reduced corporation tax, increased national insurance thresholds and, of course, the plan for growth.