Beer tax debate set for Parliament this week

The debate over an increase in beer tax will continue in the House of Commons tomorrow (November 1st) when MPs discuss the escalator that is currently in place.

As it stands, the duty on beer rises two per cent above the rate of inflation every year, a scheme that has been used since 2008.

However, critics argue that it has led to thousands of small firms and pubs going out of business as the industry is forced to increase prices.

In response, the Treasury has said: "The revenues from alcohol duty make an important contribution to tackling Britain's debt crisis.

"Budget 2012's duty increase and increases to 2014-2015 form part of our credible plan to reduce Britain's debt, which is required to ensure low interest rates and a stable platform for growth."

Earlier this month, the Chief Executive of the British Beer & Pub Association, Brigid Simmonds, said that ministers must review the increase to help pubs survive.

Posted by Emily Smith

Last updated: 31st October 2012