Mike Hancock CBE - Liberal Democrat MP for Portsmouth South

1A Albert Road
Southsea
Hampshire
PO5 2SE

Tel: 023 9286 1055
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Mike Hancock says don't increase beer tax in budget

20 April 2009

Mike Hancock MP is calling on the Chancellor not to increase the tax on beer in this year’s budget so as to try and protect pubs and jobs. This comes as it was revealed that in the past year 2,000 pubs closed and as a result 20,000 jobs were lost in the sector. Tax on beer went up 9% in last year’s budget and more tax increases were announced in the pre-budget report.

Mike Hancock said: “Pubs and particularly family run pubs are coming under increasing pressure at the moment and I think that it would be particularly short-sighted of the Chancellor if he was to increase the tax on beer in this year’s budget. We are seeing pubs closing and jobs being lost in the sector at an alarming rate. Not increasing the tax on beer will help protect jobs at a time of economic recession. And pubs are also an important community facility that bring people together which is particularly important at a time of economic hardship. It would be a tragedy if this aspect of British life was lost.”

Mike wrote to the Chancellor last week with his call and has backed a parliamentary motion (EDM 10 – Campaign to Save the Great British Pub) calling for the Government to adopt a five point plan to help protect pubs which have come under increasing pressure from cheap alcohol sales from supermarkets.

Pubs are also important for public finances and the economy as every pint sold in the pub raises almost twice as much tax as each pint sold in supermarkets. Pint for pint, beer sales in pubs and clubs create 18 jobs for every three jobs created by sales in supermarkets and off-licences. More than 8 in 10 pubs are small family-run businesses. 14 million people socialise in a pub at least once a week.

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