All-Party Parliamentary Beer Group chairman promises "robust" investigation into beer duty fraud

25-Apr-2012 - Last updated on 11-Mar-2017 at 19:14 GMT

The chairman of the All-Party Parliamentary Beer Group (APPBG), Burton MP Andrew Griffiths, has promised a “robust and rigorous” investigation into beer tax fraud after unveiling plans for an inquiry last week.

The move follows the launch of a Government consultation into the proposed introduction of duty stamps on beer bottles, cans and containers below 10 litres.

It claims tax losses from beer duty fraud cost £500m per year and has estimated that between 5% to 14% of beer consumption is illicit. The fear is that beer stamps will increase the production costs for brewers and result in an increase in the cost of beer sold to licensees.

A fund of between £20,000 and £25,000 has been pledged by a range of brewers and organisations, including the Society of Independent Brewers (SIBA) so a report can be produced and presented to the Government as part of the investigation.

The APPBG is to put together a panel of MPs, which will invite views from those affected by the proposed legislation. John Healey, Labour MP for Wentworth, is the first MP to agreed to join the panel Duty Fraud Inquiry.

Treasury minister Chloe Smith will also be invited to present evidence to the panel. The panel of MPs, expected to number around eight, will also visit Dover to consider the challenges faced by Customs officers.

Talking exclusively to the Publican’s Morning Advertiser, Griffiths, said: “This is a badly-thought-out idea and it victimises brewing. The Government has no plans to introduce this for cider and wine but has no idea or estimate about the size of duty fraud with wine. It appears to us this is victimising beer and will lead to job losses in the brewing industry.”

Griffiths is inviting more MPs to come forward and join the panel.

He said: “There is an MP I have already approach-ed who is in favour of duty stamps because he takes the view of the retailers on this. We want this to be as open and transparent an investigation so that all sides of the argument are heard. We feel confident that, when all the information is properly analysed, it will demonstate this is an ill-thought-out proposal that will damage the industry and won’t address the problem.”

There are likely to be around eight evidence sessions, in addition to the meeting in Dover. While the group does not have the powers of a select committee, Griffiths believes that the detail presented in a formal document will have a “lot of weight” in influencing the debate.

APPBG aims to get its report to the Government around the time the public consultation on duty stamps concludes on 25 June.