---

PR AND COPYWRITING

E-mail to find out more

 

MP urges Darling to reconsider tax rise

April 4, 2008: Liberal Democrat MP and real ale aficionado Greg Mulholland has tabled a Parliamentary Early Day motion calling upon Chancellor Alastair Darling to reconsider his big beer increase duty rise, announced in last month's budget.

Mr Mulholland believes the increase was a "very ill-judged move at a time when the beer and pub trade is facing such a difficult period and will lead to the closure of many pubs up and down the country."

The motion:

l recognises that even the minister with responsibility for licensing has criticised these plans and thinks that the Chancellor should reconsider

l notes a recent industry report which estimates that 8,000 pubs will close in the next 10 years, involving not only the loss of community amenities but also significant job losses

l recognises that these plans are clearly an attempt to raise revenue and not only will not tackle binge drinking but, because of the effect on the industry, will not raise anything like the amount intended

l further believes that community pubs provide a controlled environment for responsible drinking so their loss is a further blow to trying to encourage responsible alcohol consumption

l and calls upon the Chancellor to realise his grave mistake, reverse the increase on beer duty and accept a freeze upon it until such time as the industry recovers, and provide support to the great British pub instead of contributing to its demise.

Another Lib Dem MP, Tim Farron, has submitted an Early Day Motion of his own seeking to limit the power of the big pubcos.

He points out that the Beer Orders, of 1989, which were intended to create more competition in brewing, wholesaling and retailing, have instead concentrated control of British pubs into a number of pubcos.

His motion:

l notes that in 1989, the three biggest brewers owned around 20,000 pubs, about a third of the UK's total, and that the three biggest pubcos own around 20,000 pubs, a notably similar figure

l further notes that pubs are closing at the rate of around 27 pubs a week and that, from 2006 to 2007, bankruptcies amongst pub landlords increased seven-fold and is set to get worse

l notes with concern that pubcos have failed to adopt the recommendations of the Trade and Industry Select Committee, namely that rents should be sustainable

l further notes that tied tenants should not be financially worse off than if they were free of tie, that upward-only rent reviews and the gaming machine tie must cease, and that utmost transparency in all rents and reviews is paramount

l and calls upon the Department for Business, Enterprise and Regulatory Reform to refer the matter of the supply tie and rent formulation to the Competition Commissio,n with a view to addressing the dominance of the big pubcos in the pub market.