Beer Taxation and Pubs

Nigel Evans Excerpts

Thursday 28th March 2019 Commons Chamber

[Mr Nigel Evans (Ribble Valley) (Con)]

I declare an interest, as president of the all-party parliamentary beer group. It is great to follow the hon. Member for Stoke-on-Trent North (Ruth Smeeth). I do not think she heard, but when she told us that she was the MP for the Titanic brewery, I shouted, “I suspect she’s sunk a few of those.” I know I have.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

It was not a good joke the first time you said it.

--- Later in debate ---

[Mr Evans]

As you know, Mr Deputy Speaker, I live next door to a pub; there cannot be much more commitment than that. At times, I feel that I should pay my council tax for the pub rather than the house I live in. I celebrated my 50th birthday in that pub, and I welcomed you and your wife Catherine to the pub. Only a few weeks ago I was at the superb Caledonian brewery in Edinburgh and sunk a few of its pints while celebrating Wales on their march to the grand slam.

It is great to have a debate in this place where we are all coming together, rather than knocking six bells out of one another. The pub is such an important focal point for people. I live in a rural village, and it is great when people can get together. Pubs do so much to raise funds for numerous charities, and they are a place for sporting groups—whether it is darts teams or football teams—to come together.

[Mary Robinson]

I am grateful to my hon. Friend for giving way and to him and his colleagues for securing this debate about beer taxation and pubs. The wider aspect of this is pubs as a community hub. It is Mother’s Day on Sunday. Our pubs will be full of people celebrating, dining and drinking and having a great time. Does he agree that the loss of these pubs would be a real detriment to our society?

[Mr Evans]

Absolutely. I hope that many people will be taking their mums out to pubs in their communities to thank them for being their mums; we do not need any other excuse than that. We hardly pass a pub these days that does not have a board outside informing people that Mother’s Day is coming up and they should book early to avoid disappointment. There are so many occasions when one can go to a pub and celebrate. In fact, any day with a “y” in it will do, as far as I am concerned.

Pubs bring people together. The best way to see that is to go to a village where the only pub has closed. It tears the heart out of that village. I know the pressures that pubs are facing, whether due to business rates, which are crippling some small pubs, environmental standards—it is right that they have to meet those—or investment in new fridges.

Pubs generate a lot of economic activity, and not just through the sale of beer, which is a fantastic product. They provide jobs in rural areas where jobs can be scarce. In particular, they provide badly needed extra income for younger people who are perhaps at college and can be flexible with their time.

[Dr David Drew (Stroud) (Lab/Co-op)]

The hon. Gentleman is making a wonderful speech, as I knew he would on this topic, which he knows only too well. Has he considered communities that have gone even further and bought their pub? The community-owned pub is now a really important part of some villages. I congratulate the Plunkett Foundation, which does an awful lot of work to tell communities how they can buy their own pub.

[Mr Evans]

Yes. At times, there must be immense pressure for pubs that have closed to be turned into a block of flats, because there is a lot of money in housing, but there is an opportunity for them to be turned into a community pub, if the community come together to raise money and keep it going. There are countless examples of those throughout the country, and it means that the community still have a focal point where they can come together. I hope that more publicity will be given to those opportunities.

I have three breweries of different sizes in my patch: InBev, which makes Stella Artois, Thwaites brewery, which was moved from Blackburn into the Ribble Valley, is much smaller but is the famous brewery with the shire horses—there is a lot of corporate responsibility within that company—and Holmes Mill, which brews the great Bowland beers in the heart of the Ribble Valley.

[Bob Stewart]

My hon. Friend speaks with forked tongue. I have been to the pub beside his house with him twice or three times, and it is a wonderful pub, but when we go next door he always leaves behind the lady who lives in his house. She is called Alexa. He has never taken her.

[Mr Evans]

All I can say in reply to that interesting intervention is that my hon. Friend has been to my pub three times and not once has he bought me a drink. That is the sort of friends I have.

[Bob Stewart]

What about Alexa?

[Mr Evans]

I am not mentioning Alexa.

It is a great pub—it was actually the CAMRA pub of the year in 2013—but I have other pubs such as the Freemasons at Wiswell and the Parkers Arms in Newton. A lot of pubs rely on offering food as well. The hon. Member for Ealing Central and Acton (Dr Huq) mentioned that she does not drink, but people do not have to drink alcohol to go to these places because there is so much more on offer.

Mention has been made of taxation on beer, which is huge. At £13 billion, it is massive. Almost 1 million jobs are provided by the industry. We need to look at ways of lowering that taxation. There is something wrong when taxation goes up, people drink less and less money actually goes to the Inland Revenue. There should be a common-sense approach to lower taxation, increase sales and ensure that HMRC gets more money out of that.

Taxation is high if the alcohol by volume rate is high; it drops only at below 2.8%. We need to look at ways of increasing the rate to 3.5%. It would encourage more people to drink lower strength alcohol and have a great time; it would incentivise them to do that. It is worrying when a lot people drink high ABVs—5%-plus. Drinking a pint of beer is good for one’s health, but drinking too much beer with a higher ABV is not.

Tomorrow night, I was due to be in a pub celebrating a big event, but that big event is not happening; it is being deferred. All I can say is that, on 22 May, I hope to be saying, “Cheers, Brexit!”

Business of the House

Nigel Evans Excerpts

Thursday 11th January 2018 Commons Chamber

[Paul Maynard]

I recognise that many hon. Members are interested in the move towards accountable care organisations, but I urge people to keep sight of the fact that we are seeking to bring care providers together in local areas to make things more effective. We want to ensure better continuity of provision, so that fewer people need to attend hospital, ensuring that all our NHS resources are best deployed in the interests of our local communities.

[Mr Nigel Evans (Ribble Valley) (Con)]

Back to railways, Mr Speaker. My hon. Friend knows that the Secretary of State for Transport is keen to open some of the closed railway lines around the country, as my hon. Friend was when he was a Transport Minister. Will it be possible to get an early statement on what those lines may be? Many people in the Ribble Valley are keen to have the Clitheroe to Hellifield line reopened, which would allow them to visit places such as Skipton, Leeds, Bradford and other great places. The people of Yorkshire may also be able to come and visit the people of Lancashire to see what great hospitality we have in store for them.

[Paul Maynard]

Lancashire is blessed with a range of potential lines to reopen, but it is important to stress to all hon. Members that the best vehicle to seek to promote a line reopening is through their local enterprise partnership or local council. The Government will look favourably on schemes where there are opportunities for economic growth and housing. More information will be released in due course on the best methods for going about promoting such opportunities.

Taxation: Beer and Pubs

Nigel Evans Excerpts

Tuesday 31st October 2017 Westminster Hall

[Mr Nigel Evans (Ribble Valley) (Con)]

It is an honour to follow the hon. Member for Keighley (John Grogan), who is such a champion of the pub and beer industry, and to serve under your chairmanship, Mr Owen. During the last vote, I bumped into the Chancellor of the Exchequer. I said, “Chancellor, come down to Westminster Hall and listen to the debate on the beer duty,” and he smiled. I assume he is not here because he has rushed back to No. 11 Downing Street to pore over a spreadsheet and work out how much extra he can earn for the industry by reducing the taxation on beer—and also how popular he can become with each 1p reduction.

It is also a pleasure to be here with the former chairman of the all-party beer group, my hon. Friend the Member for Burton (Andrew Griffiths), who managed to have three successive 1p beer cuts and a freeze under his chairmanship—no pressure, then, on my hon. Friend the Member for Dudley South (Mike Wood), the current chairman of the beer group!

I get criticised for always prattling on about the pub that I live next door to, the Swan with Two Necks. In an emergency, I can be in that pub in three seconds. I will correct that today by mentioning three other pubs that serve the community that I represent. Alex Coward, the landlord of those pubs, is with us today and has lobbied me about the importance of cutting the beer duty. There is the White Bull at Alston, the White Bull at Gisburn and the Alston Arms at Longridge. I have eaten and drunk in all three of those pubs at some stage. Alex told me about all the charities that they support, from the Brittle Bone Society to the Air Ambulance, to Macmillan, as well as Longridge juniors and Longridge town football club and the local Joanne Smith Wareing cancer charity.

We know that pubs are a focal point for a lot of occasions, such as christenings, funerals, birthdays or just for people coming together. That is how important they are. The current chair of the all-party beer group went through a list of reasons why local pubs are important to the community, so I do not need to repeat those, but I want to stress a number of things about how important the local pub and brewing industry happens to be.

I hope that the Government will look at lower taxation on lower gravity beer. They tried an experiment on beer of 2.8% or less, but it has not taken off. People have not flooded to taste that beer, but I believe there is an audience for beer that is between 2.8% and 3.5% in strength. We are told that the Treasury would love to do it but that it cannot because of the European Union. Well, the good news is that we can all rush to our pubs post-March 2019 and celebrate our leaving the EU, but there are things that the Treasury can do, such as introduce a new rate of 2.8% and 3.5% and have a different rate of taxation on it. I have legal advice stating that the Government can do that, so I hope the Treasury will look at that.

We have argued for lowering the taxation rate generally. Every 1p that it was reduced by in the past created 4,000 more jobs in this area. Let us look again at business rates, which are going to clobber a load of pubs. I am a member of CAMRA. Twenty-one pubs are closing every week and that is a huge loss to the community, particularly when the pub is the only one in a community. It can have a savage impact.

[Ruth Smeeth]

As the hon. Gentleman knows, I am a proud representative of the Titanic brewery in my constituency. For the record, there is no better beer, but it also has a small pub estate, and its business rates have gone up by 37%. That is £70,000 a year that it can no longer invest in its estate or in its people. Surely at this point we need to reflect on what is really happening in the beer industry and what is likely to happen to pubs.

[Mr Evans]

The Treasury really has to take this issue on board. Business rates, the living wage and other costs that are heaped on the brewing and pub industry mean that this has to be looked at carefully. Pubs are closing. I mentioned Alex Coward, who employs 45 people in the local community, and we represent a semi-rural, or rural, area. These are vital jobs in those areas.

A lot of pubs play music and pay their licence under the Phonographic Performance Limited licence. A lot of pubs are now receiving a new notification. If they have a TV on the wall and show live TV—not just the sport, but something else—they are being asked to pay a minimum of £100. The larger the pub, the more they will be asked to pay. As a lot of people have mentioned, it is cheaper for someone to buy beer from a supermarket and then sit at home alone watching a big TV. How miserable is that! We need to do more to incentivise people to use pubs. If that means lowering taxation on pump-pulled beer compared with beer that someone buys in a pack—12 bottles or 24 cans—we need to do that. I am told again that that can happen when we leave the EU in March 2019, and I hope the Treasury will look at it.

[Several hon. Members rose—]

Summer Adjournment

Nigel Evans Excerpts

Thursday 20th July 2017 Commons Chamber

[Mr Nigel Evans (Ribble Valley) (Con)]

Tail-end Charlie. [Laughter.] Me, not you, Mr Deputy Speaker.

We have heard some powerful speeches here today, especially from my hon. Friend the Member for Cheltenham (Alex Chalk). I, too, lost a constituent, at the Manchester Arena. We need to do a lot more to support the families of those who survive after the loss of loved ones. The hon. Member for Heywood and Middleton (Liz McInnes) made a brilliant speech. If she wants to go to see any Ministers about increasing the sentences of these killers in motor vehicles, there are a lot of Conservative Members who will go with her to give support to that. The hon. Member for Glasgow East (David Linden) and I have a lot in common. He said he had a meteoric rise; I had a meteoric fall. I know which one I would prefer. I wish him good luck in his new job.

I have just two issues to raise. First, I am sure everyone in the Chamber was sickened by the news of the death of Cecil the lion two years ago, and today the news has come out that the son of Cecil has been shot by a trophy killer. What is wrong with the people who get any pleasure whatsoever from killing these beautiful endangered animals? If they want to shoot a lion, they should use a camera, and future generations would then be able to enjoy these wonderful creatures. I hope the Government will bring pressure to bear on the Governments of countries that allow such killers into their countryside to kill these beautiful creatures.

The second issue I want to raise is exactly the same as that mentioned by the hon. Member for Ellesmere Port and Neston (Justin Madders)—the leasehold freehold scam in our country. What is going on in Ribble Valley was brought to my attention before the general election. I do not know whether it is a north-west thing or is going on throughout the entire country. People are being recommended by builders to solicitors who then do not, funnily enough, point out or indeed emphasise the fact that the ground rents they will pay, which may start off at a relatively modest amount, will double every 10 years for the next 50 years, so at the end of that period they may be paying £10,000 a year in ground rent to live in a house that they have paid for. It is an absolute scandal.

This is blighting the properties that people are now trying to sell. The hon. Gentleman is absolutely right to say that some building societies will not touch them or lend anybody money to buy them. Even worse, when people are about to buy a property, they are told, “Oh, you can buy the freehold later on. Don’t worry about that.” What has happened in the Ribble Valley? People went to Taylor Wimpey and said, “You said we had two years to buy the freehold. Well, we’d like to buy it.” They were expecting to pay £4,500, but they were told that the leases had been sold on to another company for a sum of money, and we are now talking about a considerable sum of money that the people wanting to buy the freehold will have to pay to an independent, third company. They were not told by Taylor Wimpey that that would happen.

I want to give one vivid example, which is the test case of Trevor and Margaret Knowell, who live on Calderstones Green in Whalley. They bought their property in 2011, when they were informed that they had a two-year window within which to buy the property’s leasehold. They contacted Taylor Wimpey’s legal team before the two years had expired, and they were told they were unable to purchase the leasehold because the negotiations with a third party were “too far gone” to halt and the leasehold was then sold to E & J Estates for £7,000. Having contacted E & J Estates, Mr Knowell bought the lease for £38,000, just months after the lease had been sold for £7,000.

I say to the Government—our manifesto said that we would get some reforms in this area—that this scam must be made illegal. We have to protect people unknowingly and unwittingly buying these properties who are then left wide open to being fleeced by a third party. The developer does not appear to care at all about putting people in an invidious position, and in any case should they really suggest solicitors to act on behalf of people who are buying their properties? That should also be made illegal, so that people get proper, independent advice. Had they been warned about this in the first place, such people would not have touched these houses, and the developers would not have been able to fabricate a scam that is now inflicting misery on so many people around this country.