Kerry McCarthy MP has met with her constituents who were in Parliament yesterday calling for the abolition of the beer duty escalator. The MP for Bristol East is concerned that local pubs are facing serious financial difficulties, which has caused many to close their doors. Speaking to local campaigners, Kerry confirmed that she would write to the Chancellor, George Osborne, to urge him to do what he can to help local pubs survive the economic downturn.

While it was the previous Labour Government that initially introduced the duty escalator, this was at a time when alcohol was becoming increasingly more affordable, especially relative to incomes. Since then, though, wages have not kept up with the high level of inflation and the Government chose to increase VAT, which added 5p to the price of a pint, equivalent to a 12% duty increase. Twenty four pubs in the Bristol area closed in the last year.

Last month, Parliament debated the effects of the beer duty escalator. Labour supported a motion arguing it is time to review the economic and social impact of the escalator on the pub industry. The House of Commons did approve the motion without a vote, but the Government remains opposed to a review. Sadly, the Government is refusing to listen to Labour’s proposal to reverse the VAT increase, temporarily, to provide a much-needed boost to the economy.

Speaking after meeting her constituents, Kerry said: “I certainly understand my constituents’ concerns about the serious challenges our local pubs are facing, particularly having met with representatives from the British Beer & Pub Association and from CAMRA in the past. I appreciate too that community pubs can have an important role in our neighbourhoods. Pub closures can be very damaging for our economy and for jobs in the local community and it is important that we do all we can to keep them open. The Government needs to start considering why so many people can no longer afford to go to the pub, so I will write to the Chancellor, George Osborne, urging him to listen to these concerns and to review the economic and social impact of the beer duty escalator.”

HAZEL urged the Government to scrap inflation-busting rises in the price of beer at a rally near Westminster.

She was among speakers who addressed Campaign for Real Ale (CAMRA) members at yesterday’s “Save Your Pint” event, which followed a mass lobby of MPs in Parliament.

Last month, Hazel spoke out in the House of Commons against the massive 42% rise in beer duty since 2008.

The increase has been caused by the Government’s beer duty ‘escalator’, which allows the price of a pint to rise by 2% more than inflation.

Around a third of the cost of every pint goes straight to the Treasury and publicans say the soaring prices are forcing them out of business.

Yesterday’s rally, organised by CAMRA’s Save Your Pint campaign, was held at the Emmanuel Centre near the Houses of Parliament.

Earlier in the day Hazel met Graham Donning, a CAMRA member of more than 40 years who lives in Salford.

“Pubs are an important part of communities all over the country and when a pub closes, part of a community dies and jobs are lost,” said Hazel.

“It is difficult enough for pubs to keep going in these tough economic times, without this unfair extra tax burden.

“When the beer duty escalator was introduced people were still getting decent annual pay increases.

“But that is no longer the case and a pint is fast becoming a luxury people cannot afford.

“The Government needs to act quickly and scrap the escalator before it is too late.”

Graham, 63, added: “The beer escalator is wrecking our pub industry.

“Pubs are closing left, right and centre because landlords can’t afford to keep them going with these high beer prices.

“The Government needs to curtail the activities of the supermarkets with their cheap alcohol prices and leave our pubs alone.”

Zena Barrie, landlady at the King’s Arms on Bloom Street, Salford, last week wrote to Hazel asking her to raise her concerns about rising beer duty and the tax burden on pub owners with the Government.

Zena, who runs the pub with her partner, Beautiful South legend Paul Heaton, said the Government was “destroying small businesses”.

“The Government needs to not just end the beer duty escalator, it needs to cut beer prices immediately because pubs are closing,” she said.

“Fewer customers can afford the price of a pint but its only the big chains that can afford to buy in bulk and reduce their prices.

“The whole culture of pubs like this could be destoyed.”

Rising tax on beer is being blamed for contributing to the number of pubs closing across Britain by hundreds of Campaign for Real Ale (Camra) members protesting outside Parliament.

Camra chief executive Mike Benner said he wanted the alcohol duty escalator, which increases the tax by 2% above the inflation rate each year, to be scrapped.

Lib Dem MP Greg Mulholland, who chairs the all-party Save the Pub Group, said the escalator “does not makes sense” and was “doing damage to a great British industry”.