Beer Duty Escalator

Debate between Philip Davies and Andrew Griffiths

Thursday 1st November 2012 Commons Chamber

[Andrew Griffiths]

My hon. Friend does a great deal of work on alcohol and responsible drinking, and I am pleased that she has seen for herself the benefits that pubs can provide in educating young people and providing low-strength, high volume drinks such as beer.

I am getting some looks from the Chair, so I must press on and finish my speech. I hope hon. Members will forgive me, but Madam Deputy Speaker is giving me that stern look.

The beer and pub industry pays £11 billion in tax, and many of our brewers pay more than 50% of their turnover in tax and duty to the Treasury. This is not special pleading, and the industry does not expect to be treated any differently from others, but as my hon. Friend the Member for North Thanet (Sir Roger Gale) pointed out, companies such as Starbucks and Kentucky Fried Chicken, which have vastly larger turnovers, pay no tax. We want proper support for a good, British manufacturing industry.

We also want fairness. Britain pays 40% of all EU beer taxes, yet we drink just 13% of the beer—we are clearly not drinking hard enough. Why do we in Britain pay eight times more duty than a French drinker, 10 times that of a Spanish drinker, and 11 times that of a German drinker?

[Philip Davies (Shipley) (Con)]

I commend my hon. Friend on his speech, which is excellent as ever. Is not the point that beer duty disadvantages pubs against supermarkets? Supermarkets have 40,000 other products that they can cross-subsidise, perhaps by selling beer at a loss or a reduced price. We are in an economic mess because we have over-spent, not because we are under-taxed, and the Government’s solution should be to reduce spending, not to seek to increase taxation for ever.