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Minister's U-turn on alcohol tax | |
(about 2 hours later) | |
Licensing minister Gerry Sutcliffe has said his comments to a pub trade newspaper criticising Budget alcohol tax rises "do not reflect my views". | |
The Tories reacted with "amazement" after Mr Sutcliffe told the Morning Advertiser he wanted Chancellor Alistair Darling to change his mind. | |
A Conservative spokesman said it showed the government was "unravelling". | |
But Mr Sutcliffe later insisted he backed the increases which will see prices go up by 14% over five years. | |
In his March budget, Chancellor Alistair Darling put 4p on beer, 3p on cider, 14p on wine, 55p on spirits, an average increase of 6%, and said alcohol duty would go up by 2% above inflation for four years. | |
Pub trade associations have said the changes will spell doom for many licensees - and warned of pub closures. | Pub trade associations have said the changes will spell doom for many licensees - and warned of pub closures. |
The British Beer and Pub Association (BBPA) accused the government of punishing all beer drinkers rather than tackling the minority of binge drinkers. | The British Beer and Pub Association (BBPA) accused the government of punishing all beer drinkers rather than tackling the minority of binge drinkers. |
'Next opportunity' | 'Next opportunity' |
In an interview with The Morning Advertiser Mr Sutcliffe urged pubs to be more effective in their lobbying of government. | |
The government is frankly unravelling when even its own ministers don't support the tax rises that their government introduced in the last Budget Justine GreeningConservative MP | The government is frankly unravelling when even its own ministers don't support the tax rises that their government introduced in the last Budget Justine GreeningConservative MP |
He said: "I think the industry's right to be upset. We, and I speak as a champion of the pub trade, want the chancellor to change his mind. | He said: "I think the industry's right to be upset. We, and I speak as a champion of the pub trade, want the chancellor to change his mind. |
"The next opportunity will be the pre-Budget report in November. But the industry has seriously got to get its act together in working out what its priorities are." | "The next opportunity will be the pre-Budget report in November. But the industry has seriously got to get its act together in working out what its priorities are." |
But in a bid to defuse the situation, Mr Sutcliffe - who did not dispute what he was reported to have said - issued a statement saying that: "My comments do not accurately reflect my views." | But in a bid to defuse the situation, Mr Sutcliffe - who did not dispute what he was reported to have said - issued a statement saying that: "My comments do not accurately reflect my views." |
He added: "I fully support the tax measures in the Budget, and the chancellor's decisions on tax. | He added: "I fully support the tax measures in the Budget, and the chancellor's decisions on tax. |
"Alcohol duty increases will go towards helping some of the poorest members of our society." | "Alcohol duty increases will go towards helping some of the poorest members of our society." |
No U-turn | No U-turn |
Conservative MP Justine Greening, who speaks for the party on licensing, told BBC Radio 4's The World at One said she was amazed by the minister's comments in the newspaper. | Conservative MP Justine Greening, who speaks for the party on licensing, told BBC Radio 4's The World at One said she was amazed by the minister's comments in the newspaper. |
"The government is frankly unravelling when even its own ministers don't support the tax rises that their government introduced in the last Budget." | "The government is frankly unravelling when even its own ministers don't support the tax rises that their government introduced in the last Budget." |
She added: "What we need to be doing is tackling binge drinking, in fact, before the Budget we'd announced some very targeted measures to do just that. | She added: "What we need to be doing is tackling binge drinking, in fact, before the Budget we'd announced some very targeted measures to do just that. |
"Instead, this tax rise on alcohol is going to hit millions of responsible drinkers and won't do anything to tackle binge drinking." | "Instead, this tax rise on alcohol is going to hit millions of responsible drinkers and won't do anything to tackle binge drinking." |
She said Mr Sutcliffe was "right to say the chancellor should perform another U-turn on this Budget but it's amazing that Labour's own ministers are criticising their own Budget within two to three weeks of it being announced". | She said Mr Sutcliffe was "right to say the chancellor should perform another U-turn on this Budget but it's amazing that Labour's own ministers are criticising their own Budget within two to three weeks of it being announced". |
Treasury minister Jane Kennedy defended Mr Sutcliffe - but made it clear that there would be no U-turn on alcohol taxes. | Treasury minister Jane Kennedy defended Mr Sutcliffe - but made it clear that there would be no U-turn on alcohol taxes. |
She told BBC Radio 4's the World at One: "We are part of a government in which there is lively discussion about these issues." | She told BBC Radio 4's the World at One: "We are part of a government in which there is lively discussion about these issues." |
She added that the government was pushing ahead with the changes announced in the Budget. | She added that the government was pushing ahead with the changes announced in the Budget. |