Over 100 MPs demand beer duty cut

The Government is facing demands from more than 100 MPs to ditch its controversial beer tax increase planned for next April's budget.

A total of 113 members from all three main political parties have now signed an Early Day Motion (EDM) condemning the planned rises.

The EDM will ramp up pressure on Chancellor Alistair Darling to abandon his controversial annual beer tax escalator, which will see duty rise by 2% over inflation for the next four years following a 17% rise last year.

It is feared more duty on beer will hasten the closure rate of UK community pubs currently shutting their doors at the rate of six per day.

The British Beer and Pub Association (BBPA) believes opposition against beer tax rises and support for pubs is growing by the day — and it has gained public support through its Axe the Tax campaign run with the Campaign For Real Ale (Camra).

Association chief executive Rob Hayward said: "The beer and pub industry is not looking for any special favours.

"But at a time when the rest of the British economy is receiving tax breaks and public subsidies the Government's planned tax hikes on beer are both unfair and unsustainable."

Hayward said pubs were a vital part of their communities yet nearly six were closing every day.

"The thousands of people who have lobbied their MPs over the last few weeks is a clear demonstration of the deep concern and anger felt among landlords, customers and the wider public at what is happening," he added.

Chief executive of Camra, Mike Benner, said a third of a pint of beer already went to the taxman but now the Government wanted to increase it still further.

"At a time when pubs are suffering from the wider recession the Chancellor's tax plans will be a hammer blow to consumers and industry alike," Benner said.

The EDM has been signed by 50 Labour MPs, 40 Liberal Democrats and 17 Conservatives plus three independents, two from Plaid Cymru and one Scottish National member.

The BBPA yesterday secured a meeting with Alistair Darling later this month to discuss the issue of duty rises before the Budget.

A further groundswell of support has come from 95,000 people who have signed up for the Save The Great British Pub Facebook campaign — run by high profile licensee Inez Ward.