Coalition backbenchers have urged Chancellor George Osborne to slash beer taxes in a bid to raise cheer in community pubs across the country.
With the Budget two weeks away, Treasury Minister Sajid Javid said he could do little more than promise the MPs the Government was aware of concerns on the alcohol duty escalator, which increases taxes on beer above inflation.
Raising a debate in Westminster Hall, Tory Marcus Jones said the Chancellor should scrap the escalator to help preserve community pubs and slow down the rate of closures.
He said: “This is also having a very detrimental effect on the fabric of our society because there is a high social impact when a pub closes.
“Our pubs offer a unique leisure experience and they are a great addition to the social fabric of our country. They are often at the heart of our local communities and they are akin to community centres for their areas.
“Our pubs are also great places to make new friends and meet with friends in fact I met my wife in the Chetwynd Arms in my constituency back in 1997.
“I appreciate the work the Government has done in reducing the deficit, which has given us far lower interest rates and obviously helped the whole economy… but I would also urge you to assess this beer duty escalator and beer duty in general.
“You will know it is estimated by the Office for Budget Responsibility that £100 million less (will be raised) from beer duty and cider in 2013/14, despite the expected 5.1% duty increase.”
Mr Jones said up to 10,000 jobs could be lost as a result of the continuing impact of the escalator so he called for the industry to be “given a break”.
Tory MPs Nigel Mills, Glyn Davies and Andrew Griffiths joined the calls, alongside Liberal Democrat Greg Mulholland Mr Javid said he could not give any firm commitments but highlighted a range of things the Government had done to support businesses in general, such as cutting corporation tax, and for pubs in particular, such as reforms to gaming machines.
He told the debate: “If this Government was to cancel the 2% rises for beer that are planned, it would cost the Exchequer £35 million next year and £70 million the following year.”