In a letter to Darling seen by the Publican's Morning Advertiser's sister publication M&C Report, Osborne said the Treasury “reviews all taxes, including alcohol duty, in advance of Budget - and will be doing so again this year”.
“As part of the Coalition Agreement, the Government committed to reviewing alcohol taxation to tackle problem drinking without unfairly penalising responsible drinkers, pubs and important local industries.
“The Treasury published the Review of Alcohol Taxation in November 2010, and this set out the Government’s thinking on absolute and relative levels of alcohol duty, and the taxation of different product categories.
“The Review highlighted the balance that sometimes needs to be struck. For example health groups argue that there should be substantial increases in duty rates to combat problem drinking, while industry and consumer groups argue that levels of taxation should be frozen or even reduced to support businesses and employment.
“Of course I will be taking all these issues into account in preparing for this year’s Budget.”
Meanwhile, SIBA chairman Keith Bott said this year feels “more hopeful” than previous ones when it comes to prospect of ending the beer duty escalator.
Speaking at SIBA’s BeerX event in Sheffield, Bott said the campaign to end the beer duty escalator was the “best in all my time in this industry”.
“The campaign, in which SIBA has been a partner along with the BBPA and CAMRA, has been incredibly effective in winning support from the public and from a growing number of MPs.
“The number of MPs who are now voicing support for the escalator to stop is impressive and we can only hope that their views are being heard by the Treasury."