Amendment of the Law

Debate between Neil Parish and Andrew Griffiths

Thursday 22nd March 2012 Commons Chamber

[Andrew Griffiths]

I should say that what I meant when I spoke about the Chancellor was a lack of clarity in relation to yesterday’s statement.

I have with me a private and confidential presentation—

[Neil Parish (Tiverton and Honiton) (Con)]

I welcome what my hon. Friend is saying about beer, but I am worried that he is suddenly targeting cider. There is a great amount of cider in my constituency, and I would be worried if he wanted extra tax on it.

[Andrew Griffiths]

I assure my hon. Friend that I am not targeting cider; what I want is fairness in the system.

The presentation I mentioned, which is used by the makers of Stella Cidre, clearly states the differences in duty. It says that the duty per hectolitre paid on Stella Artois, at 5% strength, is £86.60, the duty paid on Strongbow is £36.01, and that there is a difference of £50.59. At the top it says: “Why cider? Favourable duty position resulting in margin opportunity”. As a result of our taxation system, we are penalising beer. Every time somebody chooses to have a pint of cider rather than a pint of beer, the Treasury loses 50p. All we are calling for is some fairness in the system.

Last week at Prime Minister’s Questions, I asked the Deputy Prime Minister what measures he had in place for beer, and he said that he wanted to support community pubs. The best way to do that is to give beer a break. We want a fair taxation system that recognises the importance that beer, as a lower-strength drink, can have in our society. We want recognition of the efforts that brewers are making in relation to responsible drinking and reducing the alcohol by volume of their products. I commend the Government for their work on the 2.8% strength beers that were introduced recently. We recognise that the community pub is at the heart of the big society and that it has an important part to play in all our communities. I urge the Treasury to look at this again and work out what we can do to give British beer and British pubs a fair break.