Sajid David
Economic Secretary to the Treasury
HM Treasury
1 Horseguards Road
London SW1A 2HQ
21st December 2012
Dear Sajid,
I am writing to you in support of EDM 703 (copied overleaf for ease of reference), which argues for a cost benefit analysis of the beer duty escalator - and to call for greater weight to be given to the important role pubs play within local economies and communities.
Local pubs are currently being undermined by the beer duty escalator, whilst the effect this has on communities is clear to see in my own constituency.
As I am sure you are aware, CAMRA estimates that the beer duty escalator has led to the loss of 5,800 pubs, whilst analysis from Oxford Economics indicates that a duty freeze in March 2013 would save 5,000 jobs in the sector.
Every day pubs across the country continue to close as customers are priced out of the pub, something that needs to be addressed.
As Sandra Osborne MP pointed out on the floor of the House last month, beer taxation now costs the average pub around £66,000 a year.
The parliamentary debate of November 1st 2012 on beer duty is evidence these impacts are felt across the country and that there is real depth of opposition to the beer duty escalator.
There is also strong consensus across the industry and the public that the Government needs to take urgent action to protect our local pubs.
As someone who supports a minimum unit price for alcohol and restrictions on advertising, I am certainly not advocating a tax free regime but I do think the escalator is unfair.
It does not tackle irresponsible drinking or cut price alcohol suppliers, targeting instead the pubs which should be getting our support – both as places where responsible alcohol consumption can be encouraged and which cater to a range of customers, benefitting our local economies.
I hope you will listen to these concerns and conduct a thorough review of the economic and social impact of the beer duty escalator, as requested in the EDM.
I look forward to your response.
Yours sincerely,
Caroline Lucas MP, Brighton Pavilion
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