Cheers to George and this pro-pub Government

24-Mar-2014 - Last updated on 25-Mar-2014 at 09:51 GMT

Andrew Griffiths: "You as an industry have demonstrated the economic and political benefit of the Chancellor’s decision to support brewers and pubs"

George Osborne – the beer drinker’s champion. True, not the first thought that might have gone through your mind on the day the Chancellor set foot into Number 11 four years ago. Yet after the Budget last week, I do not think it an exaggeration to say that that this is the most beer and pub-friendly Government we have seen in a generation.

The facts speak for themselves.

Last year’s decision to cut a penny off the price of a pint of beer was the first such decision by a Chancellor since 1959. Yet it was the decision to scrap Labour’s hated beer-duty escalator that really made the difference to the industry.

Ending the year on year ratcheting up of beer duty, a system which saw it rocket 48% between 2008 and 2012, ended the misery of a system which was bleeding the beer industry dry.

Historic

The more optimistic of us hoped and campaigned for a freeze in this year’s Budget, but not many expected an historic successive second cut. This of course was followed by scrapping of the alcohol duty escalator, and freezes for Scottish whisky and real cider.

All in all, this was a beer and pub budget that the whole industry should be thrilled with. Following as it did the Autumn Statement last December that gave publicans retail business rate relief discounts and abolishing the NIC jobs tax for employers hiring people under 21 and this has been a truly remarkable year of support for our industry.

There were I believe two reasons why this happened.

Benefits

First, it is undoubtedly helpful to a government trying to demonstrate it is on the side of the hard working family to cut tax on one of life’s simple pleasures – a pint of great British beer.

Yet secondly, you as an industry have demonstrated the economic and political benefit of the Chancellor’s decision to support brewers and pubs.

Be that CAMRA’s positive campaign on beer mats and posters thanking the Chancellor, awarding him Beer Drinker of the Year, or the efforts that have gone in to demonstrate the economic benefits of a cut that has deliver beer sales growth not seen for 10 years, increased revenue to the Treasury, and over £400m of investment in your businesses in the last 12 months.

Positive

This is an approach we must continue if we want to maintain a positive relationship with a Treasury that has shown its willingness not just to listen but to act.

Finally, as a footnote I would draw your attention to an article I wrote almost two years ago, where I talked about my hope for the two new ministerial appointments of Sajid Javid and Brandon Lewis. I hate to say I told you so, but both of these men have impressed me hugely in the way they have championed our industry.

We owe a great deal to their support in winning another historic success for beer and pubs.

Andrew Griffiths is MP for Burton and Uttoxeter and chair of the All-Party Parliamentary Beer Group