VALUE ADDED TAX AND BEER DUTY

Motion Text

That this House notes that value added tax (VAT) is due to rise back to 17.5 per cent. following the recent cut; is concerned that this increase will not be offset by a lowering of duty on alcohol; is further concerned that an eight per cent. increase in duty is pending, and will effectively off-set any benefit pub owners have received from the fall in VAT; regrets that this will result in yet another increase in the price of beer and other beverages which will be to the detriment of the pub industry; recognises that approximately 52 pubs are closing each week in the United Kingdom and that several factors are already negatively affecting the industry; and calls on the Government to lower the duty on beer sales to help the troubled pub industry in this country and on pub-owning companies and breweries to pass the benefit on to licensees who will be able to pass this on to the consumer and actually assist pubs.