Britain's beleaguered pub industry was given some hope yesterday after backbench MPs forced the Government to look again at rules which make beer duty rise faster than inflation.
MPs overwhelmingly backed a motion calling on the Treasury to consider the "social and economic" effects of the Beer Duty Escalator, which increases the tax by 2 per cent more than inflation.
Rooney Anand, chief executive of Greene King, welcomed the MPs' support and said: "We urge the Government to implement a review, which we hope will lead to the removal of the escalator, and will greatly benefit this traditional British industry, safeguarding jobs and contributing to long-term economic growth."
Brigid Simmonds, chief executive of the British Beer & Pub Association, said: "I am confident any review, which we hope the Government will announce, will show above-inflation increases in beer tax do not make sense – they would bring in no additional revenue for the Treasury, but at the same time threaten pubs and employment."
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