09/07/2009 - Rising beer tax 'damaging to pubs'
The Liberal Democrats have called for above-inflation rises in beer tax to be scrapped because they are "damaging" to pubs and breweries.
Under the Government's Budget-enacting Finance Bill, tax on beer will increase by 2% above the rate of inflation in 2010 and 2011, but the Lib Dems have tabled an amendment which would reverse the increase.
According to Liberal Democrat spokesman Jeremy Browne, 39 pubs a week are closing as they can no longer afford the rising tax and beer sales are falling.
Mr Browne added since last year's Budget 2,200 pubs have shut.
He warned the "escalator" of tax is putting more business at risk and together with changing drinking habits, pubs are becoming more vulnerable to closure.
Mr Browne told MPs: "This escalator that is over and above inflation is damaging pubs and breweries.
"What my amendment is seeking to do is to reduce the duty by 2% next year and in subsequent years."
But the Treasury Exchequer secretary Sarah McCarthy-Fry said beer had to taxed at an equivalent rate to wine under EU laws, therefore the Government had to increase beer tax.
Copyright © Press Association 2009
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