Differing Rates Could Save Our Local Pubs

12.34.03pm GMT Thu 17th Dec 2009

Colin Breed, Liberal Democrat MP for South East Cornwall has written to the Chancellor of the Exchequer, the Rt Hon Alistair Darling MP, asking him to consider differing alcohol duty levels for draught and non-draught products. It is hoped such a system would reduce the burden on pub landlords at what is a troubling time for the industry as a whole.

The letter, written jointly with the Chair of the All Party Parliamentary Save the Pub Group, Greg Mulholland Liberal Democrat MP for Leeds North West, comes off the back of a speculative enquiry to the European Commissioner for Taxation and the Customs Union, Commissioner Kovacs, who pointed out that differing levels,

"has not before been subject to in-depth review in the Commission not least because we have not been made aware that the administration of any Member State would wish to introduce such a scheme."

Colin Breed said,

"The pub industry is suffering in the downturn, with more pubs shutting down each day. I am therefore amazed that the UK Government has not yet asked their European colleagues to investigate the feasibility of differing tax duties.

The Treasury should be investigating every avenue available, or the traditional image of the country pub could soon be consigned to the annals of history. Our letter asks for real leadership, and I hope it will have the desired effect.