Alcohol Duty

Jim Shannon Excerpts

Monday 19th December 2022 Commons Chamber

[James Cartlidge]

I enjoyed meeting the hon. Gentleman, other parliamentarians and alcohol harm stakeholders on, I think, 24 November in the Treasury. It was a good meeting, where I think there was acceptance that we are trying with the reform package to strike that balance. We want to have competitive duty rates and to look at levelling the playing field that exists between pubs and supermarkets, but, equally, alcohol harm and consideration of public health must be at the heart of this. That is why the reform package in August has one underlying principle: taxation on the basis of ABV. We think that that is the right way forward, balancing both those approaches.

[Jim Shannon (Strangford) (DUP)]

I very much welcome the statement. It is good news not simply because the hospitality industry is on its knees, but because the steep increases in prices have led to more people having not a social drink with friends but a sustained drinking at home mentality, which can be detrimental to families. Has the Minister considered taxation aimed at multibuys in supermarkets, in co-ordination with the welcome freeze for pubs and hospitality?

[James Cartlidge]

I am grateful to the hon. Gentleman for his comments. As I said last time he asked me a question, the occupant of the Chair always seems to save the best till last. The hon. Gentleman hit the nail on the head. Let us be clear. He is talking about friends who cannot go for a drink because of economic pressures. With the enormous surge in energy costs and the rise in inflation, the biggest impact economically is on consumption and therefore discretionary spend such as in pubs, hitting hospitality. When we talk about the support that matters, it is not just help for businesses with their energy bills but the help that we are giving to consumers, so that they can still find that expenditure to support our pubs this winter. Of course, we are helping them by freezing duty for six more months. It is a win-win for consumers and for the sector.