Local MP Marcus Jones has secured a Parliamentary debate to discuss the beer duty escalator. The debate is set to take place on Tuesday 5th March.
The beer duty escalator was introduced by the Labour Government in 2008, and is currently in place until 2014/15. It means that beer duty is automatically increased by 2% above inflation every year, which has meant that tax on beer has increased some 40% since its inception.
There are growing fears that further increases in beer duty was put many local pubs out of business – the industry contributes £6 billion a year in duty and VAT, and over £21 billion to the UK’s GDP.
Speaking about the debate, Marcus said: “I am pleased to have been able to secure the Adjournment Debate as I know that there is a great deal of concern in the industry and from the wider population about the amount of tax paid on beer.
“The cost of living is a huge issue for so many people, over the last five years or so growth in incomes has been flat and well below the increase in the cost of living. For many people a trip to their local for a pint is becoming increasingly unaffordable.
“I very much hope that the debate will give backbench MPs the perfect opportunity to argue the case for the escalator to be scrapped by the Chancellor during the Budget on the 20th March.”
Concluding, Marcus added: “The beer duty escalator is a disproportionate tax which is damaging the beer and pub industry, costing many of our communities their local pubs and the jobs that they sustain.”