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Protect our Pubs

May 4, 2009 8:53 AM

VAT hike on alcoholVince Cable, Liberal Democrat Shadow Chancellor, responding to the above inflation increase in alcohol taxes said " As with Post Offices, good pubs are an asset to the communities they serve. They are also important small businesses & it is crucial that we support them. The Government announced the increase in last year's Pre-Budget Report to counter potential price reductions caused by the new 15% rate of Value Added Tax. The Liberal Democrats tabled amendments to the Finance Bill to try and prevent these increases because, whilst the VAT cut is expected to be temporary the beer duty increase is not. I voted against the increase in alcohol duty announced in this year's Budget."

However the financial difficulties of British pub tenants and landlords are also attributable to the business practices of major pub companies who need to be held to account for them. Liberal Democrats share the general concern about binge drinking, especially in public places but there is little evidence to suggest that higher taxes will have a significant impact. Other measures, including preventing irresponsible pricing by supermarkets, are likely to be more effective.

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