U.K. members of Parliament (MPs) have reportedly agreed to revisit a beer
duty escalator tax that raises the price of a pint each year by 2 percent plus
the rate of inflation. According to media reports, Conservative MP Andrew
Griffiths argued in the House of Commons that the current beer tax has cost
the country thousands of jobs as beer sales decline and pubs are forced out
of business. The debate purportedly concluded with 100 MPs voting to review
the tax despite Treasury Minister Sajid Javid’s concern that the government
would lose £105 million over the next two years if it were abolished.

“The reality is since the introduction of the beer duty escalator [in 2008], beer
duty has increased by a crippling 42 per cent,” said Griffiths, who chairs the
All-Party Parliamentary Beer Group. “The point about an escalator is you stop
when you get to the top. We have now reached the top and we are in danger
of going off the edge of a cliff.” See Burton Mail, November 2, 2012.

About The Author

For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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