Friend or foe: the coalition
Thirteen high-ranking members of the new Government — including five secretaries of state — signed up to a five-point plan to help pubs before the election.
Business secretary Vince Cable, Chief Secretary to the Treasury Dave Laws, and Deputy Prime Minister Nick Clegg are among those who signed up to the Campaign for Real Ale's pub charter, CAMRA has revealed.
CAMRA's charter commits politicians to "supporting the rebalancing of alcohol taxation", pressing for reform of the tie, and addressing issues on alcohol-related harm "through a more targeted, nuanced policy approach" that supports pubs.
Cable, Laws and energy secretary Chris Huhne, along with 135 newly elected MPs, have also lent their support to the British Beer & Pub Association's Back the Pub campaign.
It offers some hope amid gloomy predictions of what the new coalition Government may impose on pubs.
Raising VAT and keeping the alcohol duty escalator are predicted by many for the Budget on 22 June.
Experts fear a tougher approach to licensing — a senior Tory source told the MA that control of licensing is to formally switch from the Department for Culture, Media & Sport (DCMS) back to the Home Office.
It's also unlikely that the role of pubs minister will be filled in the new Parliament. One of the favourites for the post, Lib Dem MP and Save the Pub Group chair Greg Mulholland tweeted: "Seems clear there will be no minister for pubs. Not that John Healey ever really was that."
Trade leaders expressed some concern for the months ahead, but gave the Government a cautious welcome.
Paul Smith, executive director of late-night trade body Noctis, said: "We've got to be as positive as we can be. Barring concerns over Conservative plans on the late-night levy, we think there is scope for us to work very positively with the new Government."
BII chief executive Neil Robertson said he was "fairly sure that our industry and its issues will be lower down the priority list". "I hope they remember there is a law of diminishing returns when it comes to increasing duty levels. If they put up duty to such an extent that thousands lose their jobs they will then lose out on national insurance contributions."
Where they stand on pub issues
Areas of agreement
• Banning below-cost alcohol sales
• Exempting venues with a capacity under 200 from needing a licence for hosting live music
• No rise in employers' national insurance tax
• Granting automatic rate relief
Areas of differences
• Alcohol tax: the Tories would raise taxes on drinks "linked to antisocial behaviour". The Lib Dems would review the "ill-thought-through" alcohol tax to target bingeing not responsible drinkers and pubs.
• Licensing: the Tories want to "overhaul" the regime, including giving greater powers to police and councils to remove licences and charging more for late-night licences. The Lib Dems prefer the status quo with minor tweaks.
• Beer tie: the Tories want self-regulation to have a chance before enforcing a statutory code after June 2011. The Lib Dems have wide-ranging plans, including a statutory code to ensure tied tenants aren't worse off than free-of-tie licensees and asking the Competition Commission to probe limits on pub ownership.
