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MOVE TO GET ALCOHOL DUTY RATES SLASHED FAILS TO GET SUPPORT IN THE COMMONS
July 9, 2009 9:21 AM
On Tuesday (7th July), Lib Dem MPs tabled a motion to have the alcohol tax escalator, which adds a duty to alcohol of two per cent above inflation every year, scrapped.
Beer sales dropped by 8.2 per cent in the first quarter of 2009, and since the Budget last year 2,200 pubs have closed. Yet, in a vote on Tuesday 311 MPs voted against the move with only 62 in favour.
Speaking during the debate, Liberal Democrat MP for Montgomeryshire, Lembit Öpik said:
"Does my hon. Friend agree that in many small communities where shops and post offices have closed, the public house actually provides social cohesion, without which the villages would become dormitory villages for larger towns? In those circumstances, the school is also likely to close and the sense of community, which made the village such an attractive place, will be dissipated."
Later on in the debate, he added:
"Does he agree that, given the level of pub closures and the change in drinking habits, it seems extremely improbable that the Government made any holistic analysis of the net effect on the economy? Leaving aside our discussions on pubs, as a result of the changes there has probably been a net reduction in revenue to the Government, rather than an increase."
Speaking after the debate, Lembit said:
"Pubs must be offered as much help as possible in these economically difficult times so that they are able to continue to serve the communities in which they exist.
"By voting against the lowering of duty the Government has shown once again that it is not interested in the future of the British pub industry."
Ends/diwedd
Notes:
For further information on the debate, please see: http://www.publications.parliament.uk/pa/cm200809/cmhansrd/cm090707/debtext/90707-0017.htm#09070789002033
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