Beer Duty Escalator

Glyn Davies Excerpts

Tuesday 5th March 2013 Westminster Hall

[Glyn Davies (Montgomeryshire) (Con)]

Thank you for allowing me to speak in the debate, Mr Caton. I feel very much like a new boy: I have been listening to hon. Members who have been involved in this issue for a long time. I came along to the debate today because it is very important to my constituency and I want to add to and perhaps build on points with a local perspective that other hon. Members have raised. Of course, like others, I congratulate my hon. Friend the Member for Nuneaton (Mr Jones) on initiating the debate.

We are talking about the rapidly increasing level of duty, and I want to refer to the impact that the rapid changes in cost have on the social life of my constituency. I join others in appealing to my right hon. Friend the Chancellor of the Exchequer, or to my hon. Friend the Minister who is before us today, to think not just of the economic impact, although that is hugely important, but of the social impact.

In my constituency, there is a social impact to discouraging people from using the local pub, which is still a huge part of the local community. Montgomeryshire is a very rural constituency, and traditionally the social life in small villages is only about the local pub. The situation is not what it was when I was young and the whole of village life centred on the young farmers club and the local pub, but today the pub is still very important, particularly to elderly people. I believe that visiting the pub is a very good way of counteracting the loneliness that often arises because people are living so much longer; the social life associated with a pub can often be helpful in counteracting depression and perhaps even dementia. I believe that social activities do have an impact. That is an important issue for us to consider.

--- Later in debate ---

[Martin Caton (in the Chair)]

Order. That is very long for an intervention.

[Glyn Davies]

Thank you, Mr Caton. I was enjoying that intervention, although I must admit that I had some initial doubts about the reference to involving the EU and introducing regulations. I have always found myself nervous about encouraging that; we have rather too much of it already. There are instances in which the EU can be useful to us in achieving our objectives, so I will have to consider how that could happen.

A Treasury Minister will respond to the debate today. It could be said that it is an appeal before the Budget—it seeks to influence the Budget. We are talking about a reasonable level of taxation on beer. Most people think that the level of taxation is unreasonable. Due to its negative impact, it does not even produce extra income that might interest the Treasury, because it has risen incredibly quickly.

I felt some association with the comment of my hon. Friend the Member for Bedford (Richard Fuller), who said that the policy was un-Conservative. I do not want to draw a distinction between a Conservative policy and a policy from the other side, but it must be un-Conservative to seek to introduce social change in our country through the escalator’s year on year additional taxation, over and above what might be considered an inflationary increase by the Treasury. It is incredibly un-Conservative and I very much hope that we will see the end of it next week.

A lot of hon. Members have talked about the economic impact. It is a great British industry. Even in my constituency, which has had no tradition of brewing at all— the Eagle Brewery was the last major brewery, and that closed in the 1980s—there are new micro-breweries. They are employing people. One of them has taken over a local pub that was in danger of closing. Monty’s Brewery and the Waen Brewery are the subject of conversation. They are not employing a lot of people, but the potential for micro-breweries across Britain is huge. They are an important part of British industry, and we should not clamp down on them or discourage them.

My last point is that the British beer drinking industry—if I may call it that—is hugely important to the agricultural sector. Not so much in my constituency, where most of the barley grown goes into feedstock, but in England in particular and in some parts of Wales and Scotland, growing malting barley is a massive part of agriculture, and we need to act to protect it. In south-east England, the hops industry is important and a huge number of jobs are involved.

We are used to and accept a reasonable level of taxation, but a 50% increase in five years is not reasonable and not sustainable. It causes huge damage—social damage—across the country and in the end it will cause economic damage to the Government as well. The Minister should sit down with the Chancellor, have a long discussion about this issue as they prepare to deliver the Budget, and bring the beer escalator duty to an end.