Nuneaton MP Marcus Jones has called for the Chancellor to freeze beer tax, as new figures released by leading economists show the importance of the pub industry to the local economy.

The figures, released by Oxford Economics, show that the beer and pub sector provides almost 1500 jobs in Nuneaton. Marcus believes the industry is capable of generating many more if given a supportive duty regime. The figures also show that the industry is worth £38.8m annually to the Nuneaton economy.

Marcus has now called on the Government to scrap the controversial beer duty escalator in next month’s budget. There was a staggering 26 per cent increase in beer duty since 2008 under the last Government. Almost 85% of pubs are small businesses who struggle to absorb tax increases, further increasing the cost difference between pub prices and those of large supermarkets.

Due to the importance of the industry to Nuneaton, Marcus is supporting a joint campaign led by the British Beer and Pub Association (BBPA), the Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA), to freeze beer duty and to scrap the beer escalator in the budget.

Commenting on the issue, Marcus said: “With the beer and pub sector injecting over £38.8m into our local economy each year, I hope the Government will think twice about the beer duty increase and the introduction of the previous Governments duty escalator in the forthcoming budget.”

Brigid Simmonds, Chief Executive of the BBPA, said: “The broad political support for our campaign reflects the strategic importance of beer and pubs in Britain. The beer and pub sector is ready, willing and able to create jobs and help lead the country out of recession, but we need the right tax policies from the Government.”