Beer Duty Rates

Andrew Griffiths Excerpts

Tuesday 25th June 2019 Westminster Hall

[Giles Watling]

I thank the Minister for pointing that out. I am well aware that it was his predecessor; it was the Minister incumbent at the time.

I sent a long and detailed reply to the letter, but the response was almost word for word the same as the first. Four words at the start of one sentence had been removed, and one word and one number—the date—had been changed. I am sure that that was just an oversight in the machinery of the Government; I hope it is not an indication of how much the Treasury wants to debate the matter. We must do more to protect our pubs.

The Minister will tell me that the Government have supported pubs in many ways, notably through the beer duty freeze, which means that beer duty is 18% lower than it was in 2012—hurrah! No doubt that is an impressive achievement, but if we have done so much, why have 11,000 pubs closed in the last decade and why does one pub still close every 12 hours?

[Andrew Griffiths (Burton) (Con)]

My hon. Friend is making a passionate speech. The Government have delivered not just a duty freeze for our pubs, but three duty cuts followed by a number of duty freezes. The Government have taken positive action to support our pubs.

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[Giles Watling]

I ran a pub with my wife—the Kings Head on Kings Head Hill, Chingford—in one of those moments when my acting career was not going too well.

Pubs are also positive for our high streets. They attract visitors, so closures are counterproductive to the Government’s efforts to revitalise our urban centres. Let us not forget the general economic impact of the beer and pub industries, which contribute £23 billion to GDP every year and support more than 900,000 jobs. Crucially, 44% of those jobs are held by 16 to 24-year-olds.

All that is at risk, however, because of beer duty rates. Even after the Government’s reductions, we still have one of the highest rates in Europe and pay 40% of all beer duty in the EU while consuming only 12% of the beer—despite my best efforts. That has contributed to the fact that, according to the Campaign for Real Ale, 56% of drinkers believe that the price of a pint of beer in a pub has become unaffordable.

Drinkaware notes the shifting preference of the consumer, who now purchases alcohol in the off-trade marketplace to consume at home, as per my example of the little village near Stratford-upon-Avon. When people can buy a pint of beer for less than £1 in some supermarkets, it is hardly surprising that many choose that option, especially when pubs simply cannot get near those rock-bottom prices. I believe that the average pint of beer is between £3.50 and £4, which is three or four times the amount.

The data supports that shifting preference and demonstrates that while high rates of beer duty have been pricing people out of drinking in pubs, off-trade sales have been thriving. Figures from the British Beer and Pub Association show that since 2000, on-trade consumption has fallen by a massive 47.2%, but off-trade consumption has risen by 29.3%. That is clearly inequitable and stems from the disparity in cost between the two. The Government’s across-the-board beer duty reductions have not addressed that disparity, given that they also benefit off-trade sales. Because pub closures largely derive from the surge in the sale of cheap alcohol, the disparity needs to be addressed.

An underlying potential public health concern could result from inaction, because people who drink at home without a responsible landlord to keep an eye on them are at risk of alcohol abuse. Today, the number of hospital admissions related to alcohol remains high at one million annually, and that places a strain on our precious resources. Most worryingly, the number of admissions has risen as a pint has become more expensive. Even if there is not a direct correlation, 73% of publicans think that increasing the price of off-trade alcohol is crucial to tackling alcohol problems.

We can do that with a differential rate of beer duty that skews the odds back in our pubs’ favour by cutting the on-trade beer duty rate to benefit those sales over off-trade sales. The Exchequer Secretary to the Treasury said recently:

“I can see the strong argument for that, but it is unfortunately not possible under EU law. Duty is levied on production, not on the place of consumption. However, we might be able to turn to that should we have sufficient flexibility.”—[Official Report, 28 March 2019; Vol. 657, c. 635.]

We are shortly going to get that flexibility, and there must be a technological mechanism that we can use to track the destination of beer products when they leave the producer, and then add the tax accordingly. Such an approach would mean cutting the on-trade duty rate, before adding a stipend for beer products destined for the off-trade marketplace. It would also mean that the cut for on-trade sales would offset the increase in off-trade duty. I accept that such a change could impact all off-trade retailers, and therefore any such adjustment should be narrowed to large retailers only. For large retailers, sales of beer form only part of their turnover, whereas for small off-trade retailers, alcohol sales can be everything. That important point must be considered during any discussion of the proposal so that we do not damage our very valuable small businesses.

We must differentiate and cut beer duty for on-trade sales, because doing so will truly benefit our pubs. However, although I might be considered an expert on beer, I am not an expert on tax law. I hope that we can have a pledge from the Minister today that the Treasury will investigate this matter, so we can see whether such differential rates could hypothetically be used to support our pubs when we leave the EU. Moreover, when we investigate, we must find a way to ensure that producers pass on savings to the consumer. Many in the industry allege that previous savings have been retained by brewers, and that undermines efforts to save our pubs.

If I have convinced the Minister that there is still a strong argument for differential rates of beer duty—I am sure I have—I hope that one day he will join me for a drink in my local in Frinton to celebrate the introduction of this important change.

[Andrew Griffiths (Burton) (Con)]

rose—

[Mr Philip Hollobone (in the Chair)]

Order. Does the hon. Member for Burton have the permission both of the mover of the motion and of the Minister to contribute to the debate?

[Andrew Griffiths]

Yes, I do. Thank you, Mr Hollobone, for allowing me to take part in this debate at the very last minute. I wholeheartedly congratulate my hon. Friend the Member for Clacton (Giles Watling) on his tour de force in defence of the great British beer industry and on the importance of the British pint. I only wish there were more Members of Parliament who spoke with such passion about what is a great British industry. Although the Americans or the Germans or the Belgians might claim it, I have no doubt that we produce the best beer in the world here in Britain and we should support the industry.

I will reiterate a few of the points that my hon. Friend made so well. First, there are the costs incurred in the on-trade and the off-trade. It is more cost-effective and cost-efficient to sell trays of lager or six-packs of beer from a supermarket, for them to go down the aisle, be beeped through by the assistant in the supermarket of one’s choice and for someone to take them home. There is clearly a much higher cost involved in delivering a wonderful pint of British cask ale. For a start, there is a great deal more work in keeping it, and there is the customer service that is needed in its delivery. There is a lot more science and work in delivering great customer service and a great pint of beer than one may imagine, and that costs the publican. It also, of course, provides excellent jobs, with good training, in the pub industry, which we should support and encourage.

[Giles Watling]

My hon. Friend will appreciate that there is a great artisan skill in looking after beers, such as knowing how to tap and spile, when to leave the beer waiting, and serving it when it is just right.

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[Andrew Griffiths]

My father said that there was no such thing as bad beer. My hon. Friend is articulating that there is—there is a skill; it is a profession. One of the things we have lost over many years is the landlord as a profession, but with the rise of cask ale, it is beginning to come back. The landlord was well respected in our communities. He was a pillar of the community. He knew his job and he knew his cellar. The more we can support the great British pub, the more those skills can be retained and will flourish.

Secondly, on public safety, we all suffer on our high streets occasionally from what we call preloading or binge drinking, particularly among younger people who might buy some alcohol from the supermarket, or who may get it from their parents or whatever, who then go and drink in the park or in the town centre. There is a cost involved for the police and the wider community in managing that, but there is no cost to the supermarket. However, publicans are required to keep their house in order. They are required to have door staff who treat people with respect and with care, and who make sure that the licensed premises is safe and that people who turn up who may have had too much to drink are refused so that everybody else in the establishment is kept safe. None of those costs are on a supermarket, but they are on the British landlord. It is important to recognise that and to represent it in the taxation regime.

There is also the extra cost of delivering cask ale or draught ale. This may be one way in which the Minister can think about being creative when he looks at a replacement for EU duty on alcohol as we come out of the European Union. The duty is on production and it may be difficult to differentiate the duty on a bottle of beer sold from a supermarket and the beer sold in a pub, but we could differentiate a bottle of beer sold in a supermarket and a pint of draught ale, because it is in a different container and is served in a different way. That may be one clever way—I know the Minister is extremely clever—in which he can crack this nut of supporting our pubs, which offer an asset to the community, keep us safe and are the great introduction to responsible drinking. I am sure hon. Members remember when someone went down to the pub where the landlord would keep an eye on them; he knows the family; if someone gets into trouble, he says, “You’ve had a few too many—go home.” We risk losing that if we lose the great British pub.

[Hugh Gaffney]

I am a non-alcoholic. I do not drink. I have done the pub trade for 10 years and I have never drank. I enjoy the social side of going to a pub and meeting people. Where publicans are really struggling now is with business rates. Pubs are community hubs, and we really need to look at business rates.

[Andrew Griffiths]

I could not agree with the hon. Gentleman more. As the ex-chairman of the all-party parliamentary beer group, I decided to challenge myself to have 12 months off alcohol. That runs out in July. I have been alcohol-free for 12 months, but that does not mean that I do not continue to support the British brewing industry and the British pub. It is absolutely at the centre of our community. The hon. Gentleman is exactly right.

The hon. Gentleman mentioned business rates and it is absolutely right that pubs are treated in a unique way on business rates. I use an old phrase: we have an analogue taxation system in a digital world. I am not saying that Amazon will be delivering my pint of cask ale to me via Amazon Prime, but businesses more generally, particularly small businesses, are having to compete with sales on the internet and the brave new world of retailing. I am absolutely sure that doing something about business rates will help our high streets.

I have one other matter to take up with the Minister, which I hope he will find interesting. One of the objectives behind all Government policy is responsible drinking. We want people to enjoy a pint of great British beer, but we want them to do it responsibly. A great thing we have seen because of responsible actions by brewers is a reduction in the alcohol by volume in drinks, and in beer in particular. Beer is a particularly good way for us to take units out of consumption, because of its high volume and relatively low strength.

The Government introduced a lower rate of duty on beer less than 2.8% ABV. Brewers have done a really good job and have tried to embrace that, but it is difficult for a brewer to produce a tasty beer at less than 2.8%. It is the alcohol that gives it the bite, but it is also the alcohol that helps to preserve it and keep it drinkable in the pipes for longer. With the best of intentions, landlords wanted to provide a lower-alcohol beer on cask, but they could not because it was not economically viable because the beer went off. It was 2.8% because of the EU directive, which prevented us from doing anything else. As we Brexit and come out of the European Union, we have the opportunity of a differential rate—maybe 3% or 3.5%—at which brewers could produce a great, tasty beer while taking units out of consumption. For those of us who enjoy a pint, but not a stronger pint, all those things would work well together.

I thank you very much for allowing me to take part in the debate, Mr Hollobone. In conclusion, I am absolutely heartened to hear that we have such beer champions. As the MP representing the heart of British brewing—Burton upon Trent, with its history and future in brewing—I hope the Minister will think about using Brexit to deliver cheaper beer for Britons across the country as we leave the European Union.

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[Jesse Norman]

That will certainly be of great interest to my constituents, both as consumers and producers. As my hon. Friend knows, there has been a tremendous reinvigoration of the brewing industry over the last nine years. The number of brewers has this year risen dramatically to more than 2,200. The rise of craft beer has seen breweries grow and flourish in every part of this country, including microbreweries, and exports have reached more than £500 million a year.

Again, it would be wrong of me not to mention a personal interest in this context. Certainly, my county of Herefordshire is as amply endowed with fabulous breweries and pubs as any part of the country. It would be wrong not to mention Wye Valley Brewery, Golden Valley Brewery and Hereford Brewery—I have pulled a pint of its Hereford Best in the Strangers Bar. Notable pubs in Hereford are the Barrels, where I held an informal surgery last Friday afternoon for a considerable period; the Volunteer Inn, known as the Volly; the Lichfield Vaults, known as the Lich; the Grapes; and the Britannia. However, I also pay attention to the specialists that have come into the market in my constituency over the last few years, which picks out this wider process of economic and social change, including Beer in Hand and the Hereford Beer House—part of a panoply of pubs across the entire county, including the King’s Head Hotel, the Man of Ross, the Mill Race in Ross and many other fine houses.

It would also be wrong of me not to touch on the excellent work in the community of the local Campaign for Real Ale team, with my support, in saving, for the second time, the Broadleys pub in south Hereford from being turned into a Co-op. It sheds a very bad light on the Co-op, which is in many ways a fine institution that I otherwise rather admire, even if I did have the crystal Methodist in front of me at one point when I was on the Treasury Committee, if hon. Members remember him. It should not sponsor the closure of pubs in order to open new Co-ops merely a few hundred yards away from ones that already exist. I single it out personally, not as a matter of Government policy, for its misbehaviour in that regard.

[Andrew Griffiths]

I agree with my hon. Friend, because I have seen that in action. Does he agree that one great way to support the great British pub is by doing something on beer duty? Seven out of 10 alcoholic drinks purchased in a pub are beer, so if we want to help pubs, doing something specifically on beer is the way to do it.

[Jesse Norman]

I will come on to a point my hon. Friend raised, and with great eloquence, on the vigorous role that the Government have taken in cutting beer duty and supporting the industry. However, I point out that this great change over the last few years has not been the result merely of enlightened tax policy but of an outbreak of entrepreneurialism and energy in the sector as a whole. It is important to realise that the Government cannot reverse the laws of economic gravity or changing tastes and habits, but they can help at the margin, and have tried to.

As my hon. Friend will know, in 2013 the Government took the decision to end the beer duty escalator. Since then, they have cut or frozen beer duty several times, including at the last Budget, with the effect that a typical pint of beer is 14p cheaper than it would otherwise be. The Government will of course continue to look for ways to support the brewing industry, and I absolutely look forward to further engagement with my hon. Friends and Members from across the House.

However, it is important to try to strike a responsible and sustainable balance with wider public spending commitments. It is worth noting that the Exchequer has forgone more than £5.2 billion in revenue due to cuts and freezes to all alcohol duties since 2013. That is £5 billion that has to be made up by taxpayers by other means if we are to be able to spend as we would wish on our public services. [Interruption.] Hon. Members who have recently arrived for the next debate will not be aware that we have a few more minutes, because of the kind courtesy of the Chair, and can run the debate until 4.45 pm.

My hon. Friend the Member for Clacton is absolutely right to emphasise the social importance of pubs, which are central places in the community. They are mixing places and meeting places for people from every walk of life. My hon. Friend the Member for Burton also made the point that pubs are a place of supervised, safe drinking, where publicans—male or female—know their customers, pulling pints and pulling people together in a social environment. That of course raises the stakes from a Government standpoint.

When considering whether to introduce differential beer duty, we and Governments before us have had to acknowledge that the UK is currently bound by EU laws that harmonise excise duties applicable to alcohol products. We can only introduce reliefs or different rates of duty for beer that are compatible with the EU directive on alcohol excise duty structures. My hon. Friend the Member for Burton made the point that, once the UK has left the EU, the Government and Parliament will no longer be bound by this directive, so there should be much greater opportunity to explore creative proposals to redress that balance. But until then, there are limits laid down in statute as to what can be introduced. However, even within that context—this point has been touched on—we have been able to make progress and exploit some existing differentials, which have benefited pubs and breweries. Those include the small brewers relief, which allows the smallest breweries to receive up to 50% off their duty bill in the start-up and growth phase. As hon. Members will know, the Treasury announced a review of that relief in the Budget. My officials are now working to take the results of the survey further to address the issues raised, and the Government hope to make further announcements in due course.

Of course, as I have said, we also recognise the importance of responsible drinking. That is why there are already differential rates of duty on lower-strength and alcohol-free beers. On beers of less than 1.2% ABV, no duty is paid at all, and on beers between 1.2% and 2.8%, the reduced rate is less than half the standard beer duty rate. My hon. Friend the Member for Burton is absolutely right. It is hard to produce a beer of, I would say, less than 2.3% that maintains its taste, but at between 2.3% and 2.8%, one can have a delicious pint and benefit from the duty differential. Conversely, higher-strength beers over 7.5% ABV pay a higher duty rate of roughly 30% more, in part to send a fiscal signal about the importance of responsible drinking.

[Andrew Griffiths]

The Minister is absolutely right in what he says about lower-strength beers and the potential that that has, but may I share with him what brewers across the country have said to me? If they got the opportunity, through the duty regime, to promote beers at 3% or up to 3.5%, they would do that wholeheartedly. That would not only create a new category, but help to take alcohol units out and therefore help responsible drinking at the same time.

[Jesse Norman]

I am grateful for that intervention. There may be scope to contemplate an uplift in relation to the higher level of lower-strength beer. It would be interesting to discuss that further.

Let me turn to some of the points that my hon. Friend the Member for Clacton raised. I intervened only to provide the point of information to him, because of course I did not see the correspondence that he had received and therefore could not respond to it in those terms. I apologise if he was disappointed by the response that was given. It is always the Treasury’s policy to try to give informative and full as well as, of course, accurate responses.

Let me pick up a couple of the points that were raised in my hon. Friend’s speech and that reiterate some of the wider issues. Of course, there are public health outcomes that need to be met. The closure of pubs potentially affects some of those, particularly in a world that has seen, in this country at least, something of an epidemic of loneliness, so my hon. Friend was absolutely right to pick up on that. He is also right to say that there is evidence that responsible drinking and better public health outcomes can be due to differential rates of duty. I understand that point. It is important, though, to remind ourselves of the practical difficulties that need to be overcome. It is not merely the EU law issue. It is also important that whatever the regimen may be, it is not subject to legal challenge for breaching state aid or competition rules. And we may wish to remain aligned with the EU even post Brexit, from a competition or state aid perspective, in part to prevent mercantilism from breaking out between EU businesses and our own.

Of course, there is an issue about enforcement. Her Majesty’s Revenue and Customs taxes beer at the point at which it moves into general distribution, rather than monitoring the wider beer supply chain. The concern is obviously about the potential to repackage beer that had the lower rate of duty paid on it and then to sell it and trouser the difference.

[Andrew Griffiths]

I absolutely understand the point that the Minister makes about the grey market and the potential for fraud; the all-party parliamentary beer group did an investigation into that. I therefore point him back to my previous remarks on draught beer. It is very easy to understand draught beer. It cannot be repackaged; it cannot be put in a different container; it is draught beer. We could have a differential on draught beer that I think would solve my hon. Friend’s problem.

[Jesse Norman]

I am delighted to have taken that final point of information. It may be the case that when we come to reconsider it, the draught beer distinction that my hon. Friend draws gives us a workable legal and practical basis on which to proceed. My point is a much simpler one: it is important to bear in mind the potential grey market impacts, as well as the competition, state aid and legal points that I raised earlier. Having said that, I am enormously grateful to my hon. Friend the Member for Clacton for initiating the debate and for making a case of great passion and urgency with his usual oratorical flourish. Even if I cannot join him in his own Kings Head where he was a publican, I very much hope to be able to join him in the future at some point.

Question put and agreed to.

Resolved,

That this House has considered differential rates of beer duty.

Communities: Charities and Volunteers

Andrew Griffiths Excerpts

Wednesday 13th February 2019 Commons Chamber

[Victoria Prentis (Banbury) (Con)]

My parents were dedicated to voluntary work. Whereas other children played cricket, as you did, Mr Deputy Speaker, or played mummies and daddies or shops, my sisters and I used to play “holding a meeting”, and it was invariably a charity meeting. So it is not a great surprise that, all my adult life, I have tried to work at least one day a week for charity. That has enabled me to move from charity to charity locally, helping to buy a bus for Leonard Cheshire and selling cushions for Fine Cell Work—good golly, that was difficult; nobody likes giving money to prisoners, apart from those involved in the criminal justice system. I also raised money for the urology department—try that, guys; a urology ball, anyone?

There are two things that I am most proud of. First, along with my right hon. Friend the Member for South Northamptonshire (Andrea Leadsom), I set up NorPIP, as a founding trustee. Our by-line was “Two is too late”, which is not quite true, but it focused strongly on the attachment issues between parents who are struggling and their very young babies. Secondly, I set up the benefactors’ board for my local hospital trust. We described that as the icing on the cake. What we were adding to the NHS, which we all really supported, were the bits that the NHS could not fund, such as new bits of equipment that it could not take the extra leap to fund, nice duvet covers for the children and equipment for the hospital school. I am proud to have set up that fund and chaired it for many years. I am also proud that my predecessor’s wife took it over when I was elected to this place. She is a great lady, and he is a great man. He has had a knock-back in his charitable experiences today as Age Friendly Banbury has not received the funding it went for, but I know that will not set him back.

I am trying to say that charity work is a great background for someone to be a local MP. It means they know people locally—leant-in people locally—and they know what is going on in their local area. It is of course a great background for everybody. As the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) said, it is really good for everybody’s mental health to volunteer. When our son died, my work for Save the Baby helped me to get back to playing a part in society. We can get positive things, as you know, Mr Deputy Speaker, out of tragedy.

To put it politely, volunteers are so much more powerful and good, at fundraising in particular, than paid charity workers. People give money to people. We know that, and we have proved it time and again.

[Andrew Griffiths (Burton) (Con)]

May I commend two organisations—the Lions and Rotary—to my hon. Friend? I am lucky in my constituency to have Burton Rotary and Uttoxeter Lions. Both organisations raise tens of thousands for good causes in my constituency and, I am sure, across the country. Does she agree that those organisations play a huge role in our communities?

[Victoria Prentis]

I do. Those are fabulous local groups, and we are lucky enough to have them in my area too. My hon. Friend is quite right to draw attention to them.

We are not just talking about formal charities today. I would like to tell the Chamber about Tony, my next-door neighbour. He not only takes my children to the bus, reduces the local rat population, uploads new photos on the village website, takes other families’ dogs for walks, and opens and checks the church daily, but he does all this by 8.30 every morning. We all know people like this and, quite frankly, we want to grow into such people. It is great that, as the Minister told us earlier, 30% of adults are doing some volunteering. I would like her to measure not just the money that is given, but the time that is spent by stalwarts of our communities, such as Tony, who do so much for us.

I could not let such an opportunity pass without mentioning Singing for Syrians, which I set up soon after my election in 2015. I heard on the radio that Syrian doctors were working unpaid, and I thought we would have a bit of a whip round. Everybody I asked said yes and tried to help. It is my dream charity. We encourage people to do the work for us and to do their own thing—inspired slightly, I must say, by the Macmillan annual coffee morning. Everybody can get involved in the singing, or in eating at the fabulous Syrian supper clubs. This year, our flagship will be on 10 December in St Margaret’s, and a marvellous cross-party choir of MPs will be taking part. Others do the work; we just receive and distribute the money, and there are events all over the country.

We need the money more than ever. The Hands Up Foundation, which we fund, is one of the very few charities still donating into northern Syria, as the big players have pulled out. Our prosthetic limb clinic was flooded two weeks ago—all the equipment is kept in the basement to protect it from aerial bombardment—and we are trying to raise £10,000 to re-home the limb clinic, which provides such essential services to those who have lost limbs in the war. We are still about £4,000 short of that target, so if anybody would like to give me a cheque afterwards, it would be gratefully received. I encourage everybody present in the Chamber, perhaps if there is a boring moment later, to google “Singing for Syrians” and watch our very short clip, “Sing like they can hear us!” If they have three minutes and want a good laugh, they can google, “Singing for Syrians Flashmob” in Marylebone station, which is fantastic.

I would like to thank everybody who volunteers for all our local and national charities. I especially want to thank those who volunteer in north Oxfordshire. I am particularly proud that we have national bases locally for the Child Brain Injury Trust and for Adoption UK. I am inspired by my hon. Friend the Member for Witney (Robert Courts), who has a “Volunteering Week”, during which it appears that he does a lot of gardening. I am going to do “Victoria Volunteers” from 23 September for a week, when I am looking forward to cooking for Banbury Young Homelessness Project, eating cake at Restore, making tea at the Royal Voluntary Service and reading to children with the indomitable women of ARCh—Assisted Reading for Children—which is just a fantastic organisation. If I am allowed to, I will also do some volunteer driving for the people who volunteer out of the citizens advice bureau, but they may not want me and I may not pass the check. It is fantastic what is done by people all around our country, and I cannot praise them highly enough. I thank the Minister for all she does.

Sport in the UK

Andrew Griffiths Excerpts

Monday 4th February 2019 Commons Chamber

[Andrew Griffiths (Burton) (Con)]

It is a great pleasure to follow the hon. Member for Tooting (Dr Allin-Khan), who spoke on behalf of the Opposition. She made a powerful speech, but I have to say that it was quite negative. She talked about all the things she does not like—including betting, big football clubs and sitting down at the football—but we should be talking about the positive things that sport can achieve and what it brings to all our communities. Let us not be dour; let us be positive about the power of sport.

The Minister gave a brilliant speech. We were lucky to have the Tour de France visit Yorkshire not so long ago, and she gave us a tour de force today about all the benefits of sport.

As well as being the home of brewing, my constituency of Burton and Uttoxeter is also the home of the English football team. We are delighted to have in Burton—I share it with my hon. Friend the Member for Lichfield (Michael Fabricant)—St George’s Park, the home not just of the English football team but of all 28 England national football teams, including the disability teams, the women’s team and the blind team. It is a truly inspirational facility. I took some credit from the Bring it to Burton campaign, which I ran when I was a candidate. That was obviously instrumental in the £105 million being spent in my constituency to develop that state-of-the-art facility. The 13 pitches have attracted teams such as Barcelona and Monaco, and the Irish rugby union team have trained there. We are a magnet for sporting excellence and it is a great pleasure to have the facility in my constituency.

We also have Uttoxeter racecourse for the sport of kings. I am delighted that we play host every year to the west midlands grand national, which attracts some 16,000 people to my constituency on the day and puts £1 million into local businesses over that weekend. We talk about the power and benefit of sport, but its financial benefit to my constituents and those businesses is really important.

[John Lamont]

My hon. Friend is making a powerful point about horse-racing, which in terms of attendance and revenue created is the second biggest sport in the United Kingdom; it is a great shame that it has not been mentioned so far in the debate. My constituency has Kelso racecourse, which contributes greatly to the local economy. Does my hon. Friend agree that horse-racing is very much an underrated sport and that it does so much to promote sport and physical activity?

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[Andrew Griffiths]

Absolutely—my hon. Friend is spot on. I am lucky enough to know very well David MacDonald and his team who run Uttoxeter races, and it is thriving. Horse-racing is a great sport that inspires people and gives a great day out. My hon. Friend is absolutely right to say that we should not underestimate the real benefits of horse-racing to the United Kingdom.

[Carol Monaghan (Glasgow North West) (SNP)]

May I seek clarification on the previous intervention? In what terms is horse-racing the biggest sport? It may be in terms of betting revenues, but it is certainly not in terms of participation.

[Andrew Griffiths]

I believe my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) may have been referring to attendance, but I understand the hon. Lady’s point.

Football is at the crux of the point I really want to make. We have had a great sporting weekend, with some fantastic sporting triumphs, including England’s success over Ireland in the rugby—[Interruption.] I will not mention the cricket. I was lucky enough to attend another sporting giant of a match on Saturday: the thrilling nil-nil draw between Burton Albion and Oxford United. I was delighted to be there.

Burton Albion is a small club. It was only promoted to the football league in 2009, yet by 2017 it had been promoted to the championship. That is a Roy of the Rovers-type success story for a club that is embedded in the community. Thanks to the hard work and determination of the chairman, Mr Ben Robinson, and Nigel Clough, our inspirational manager, who has a huge sporting history behind him, the club has done incredible things. We talk so often about money in sport, but Burton Albion is a shining example of what heart and passion, rather than just money, can do in terms of delivering.

[Mrs Helen Grant]

On the commercial benefits of and money in sport, does my hon. Friend agree that women still lag behind men in commercial sponsorship and that sponsors should become more alive to the benefits of association with some of our fantastic female role models?

[Andrew Griffiths]

My hon. Friend is absolutely right. Women’s sport, such as women’s football, is thrilling to watch, and the advertisers should get on board and realise how powerful it could be for their brands.

Burton Albion Community Trust is a shining example of what many clubs up and down the country are doing. It is not just about elite sport; it runs grassroots projects throughout my community. Every week, it touches some 7,000 people through the programmes it runs, including the Fit Fans sessions for, shall we say, the more mature fan, to get them fit; walking football; disability teams such as Able Too and Powerchair; and, importantly for me, Head for Goal, which is a mental health and wellbeing programme, using the power of sport to improve mental health. Given that this is Children’s Mental Health Week, and with my own appreciation of the issues of mental health, it is really important to acknowledge the power of sport to be able to improve mental health. The community trusts of lots of clubs up and down the country, working with children, old people and the disabled, are making a real contribution.

Finally, I hope that the Minister has heard what I have said about the power of community trusts, and that she will agree to visit the mighty Pirelli stadium, where she will be able to see the work of Burton Albion Community Trust in my community.

Finance (No. 2) Bill

Andrew Griffiths Excerpts

Carry-over motion: House of Commons
Monday 11th April 2016 Commons Chamber

[John Mann (Bassetlaw) (Lab)]

As ever with the Finance Bill, the Public Gallery is packed to the rafters.

Unusually, the shadow Chancellor is in the Chamber during my speech, which gives me the opportunity to pass on a bit of advice. This is also an opportunity—not for the first time, the second time or the third time, but for the fourth time—for the Government to recognise the advice I have given the House and that they have accepted. It started with the pasty tax, and the Bakewell pudding and other puddings were saved when the Government listened to the advice I provided. This time, it is the £1,000 threshold for taxation on interest. I proposed that for a different reason. I did not try to pretend that it was in some way an incentive for saving, as the Government are vainly attempting to do; I suggested that it was rather sensible, because so many people every year have the irritation of trying to work out minuscule amounts of interest for their tax returns.

That idea has been accepted, and I therefore have a fifth proposal ready and waiting for the Chancellor—I am sure he is listening—to improve future Budgets. This time, the Chancellor is keen on city regions. That is one of the few things he is doing on which I am not totally in disagreement with him. The Sheffield city region is moving ahead appropriately with the support of Bassetlaw Council, among others. It would be sensible, in the near future, for the Government to devolve arts and sports funding to city regions, as I have already proposed. But to my mind, they should go a lot further.

Broadband is one of the key weaknesses in our infrastructure. I would like the delivery of broadband to be devolved to city regions during the next year, so that areas such as mine can get ahead of the game, and city regions can, as well; they will need to, because one of this Government’s great failures is that when it comes to broadband we are lagging behind too much of the world. We should be leaders, but we are not. It is false comfort that the Government give every year about progress, which is far too slow.

I was in Japan last week, and had the opportunity for a bit of a Skype using the superfast broadband available throughout that country. It gives a connectivity that we do not have in this country. It would be appropriate for broadband delivery to be devolved to the city region level. I hope that idea will be accepted by the Chancellor, because he says he is in favour of being a world leader in superfast broadband.

I will throw in a second idea, about housing delivery. City regions are having to agree targets on housing with Government. I would like to see those targets tied to a borrowing potential so that that housing can be delivered. We should allow a borrowing potential that is directly linked to the agreed housing target for city regions. Those two ideas would allow city regions such as Sheffield to develop superfast broadband ahead of many parts of the world and to get housing delivery moving.

As I have said previously—this has not been adopted yet by my own Front-Bench team, but I am sure it will be—when we talk about housing, the key demand in my area is for bungalows, and prefabricated bungalows are now coming on-stream, with the biggest producer anywhere in the country. Why bungalows? Because the Government ridiculously attempted to use the bedroom tax to force a lot of people out of large three-bedroom houses, because they were single elderly pensioners. We should offer them a cheap-to-heat modern bungalow. Many people would rent them willingly, and others would buy them. The demand would be huge. If we devolved that power away from central Government, housing delivery, which, again, is said to be a key Government priority, would be dramatically faster.

I put that idea forward optimistically, knowing that, as was the case with the community infrastructure levy, the pensions drawdown, the pasty tax and the interest on savings, my idea will be adopted. Of course it need not be attributed to me—none of the others was; the Government can take entire and total credit for it.

My advice to the Labour Front Bench and shadow Chancellor would be to hone in on this Government’s key fundamental weaknesses, and we should stick repeatedly to four key themes. The first is inequality, which has already been well articulated. The rich are getting richer, the poor are getting poorer, and the country does not like that. That is why there was such a huge reaction to the Prime Minister and the issue of offshoring. People do not like the idea that the rich are getting so much richer and the poor are getting poorer; that is not a British value. The Labour party should hone in on that, because it is about economic policy.

Secondly, the Government have a huge dilemma because they are not delivering on productivity. For the skills agenda in this country we have bandied about apprenticeships as if they are anything and everything, including 80,000 hairdressing apprenticeships that never become jobs, through to 60,000 at McDonald’s—

[Andrew Griffiths (Burton) (Con)]

What’s wrong with hairdressing?

[John Mann]

Nothing is wrong with hairdressing, but it is wrong to have 80,000 apprentices who do not go into that industry because there are no vacancies. Instead, we should be spending money in areas where we need apprenticeships, such as manufacturing, and craft or building skills. That is more complex and difficult, and so we and the Government ducked it. That is why productivity fails to grow.

The third area is home ownership. That was regarded—this is an accurate historical comment—as the thing most associated with Margaret Thatcher, and it was fundamental to winning over Labour voters who shifted for a period of time and began voting Tory, particularly in ’79 and ’83, thanks to the concept that the Tory party was the party of home ownership. That concept has been destroyed over the past six years, and we should be taking up that mantle. We are in favour of home ownership. Of course young people in my area want rented accommodation temporarily, but their vision and aspiration is to own their own home. I do not know any people who do not want that, and the Government have repeatedly made that vision harder and more distant. We should be hammering home that core Labour value.

Fourthly, this Government have repeatedly accused the previous Labour Government of mortgaging the future and loading debt on to future generations, but this Chancellor, more than any other in British peacetime history, has loaded up the national debt, with his Back Benchers happily confusing deficit and debt every time it is debated. Under him, the national debt keeps going up dramatically. This year it is up dramatically, and the projections are for it to do that for the next five years. That is a fundamental economic failure of an unprecedented level by this Government.

Budget Resolutions and Economic Situation

Andrew Griffiths Excerpts

Tuesday 22nd March 2016 Commons Chamber

[Mr Osborne]

Mr Speaker—

[Andrew Griffiths (Burton) (Con)]

Will my right hon. Friend give way?

[Mr Osborne]

Of course.

[Andrew Griffiths]

Will the Chancellor confirm to the House that this Government are spending £2 billion more on support for the disabled, that inequality is at its lowest rate for 25 years according to the Institute for Fiscal Studies and that there are 2 million more people in work thanks to this Government? Is that not what we are doing for the vulnerable?

[Mr Osborne]

My hon. Friend is absolutely right: more people in work, reduced inequality, reduced poverty, more disabled people in work and, by the way, we got in a freeze on beer duty as well.

Oral Answers to Questions

Andrew Griffiths Excerpts

Tuesday 1st March 2016 Commons Chamber

[Mr Speaker]

On spirits, Mr Andrew Griffiths.

[Andrew Griffiths (Burton) (Con)]

Any changes or reductions in spirit duty will impact on the market for other drinks, such as beer. I draw the House’s attention to my entry in the Register of Members’ Financial Interests, but this Government and this Chancellor scrapped Labour’s hated beer duty escalator and cut beer duty three times, which led to more beer sales and more revenue for the Treasury, and which saved hundreds of pubs. Will he continue that support in future?

[Damian Hinds]

My hon. Friend speaks in exactly the right spirit. He is the representative of Burton, the home of beer, and nobody has done more to advocate for that important British industry. The Budget is on 16 March. My right hon. Friend the Chancellor makes any and all changes to any duties at such fiscal events.

Oral Answers to Questions

Andrew Griffiths Excerpts

Tuesday 10th March 2015 Commons Chamber

[Danny Alexander]

It would be wrong for me to go into the ongoing discussions between BIS and other Departments and the industry. However, I can certainly say that I am aware of the issues that the industry is experiencing, and a discussion on that subject is going on with the Government.

[Andrew Griffiths (Burton) (Con)]

T2. Under the previous Labour Government, thousands of pubs closed and the brewing industry was taxed to the point of extinction. The Campaign for Real Ale now says that the Chancellor has saved 1,050 pubs, sold 75 million extra pints and has been the saviour of Britain’s brewing industry. Does the Chief Secretary agree that this Government have been positive for beer and pubs, and will he urge the Chancellor to keep on supporting our breweries?

[Danny Alexander]

This Government have undoubtedly been positive for beer and pubs. Many hon. Members, including my hon. Friend the Member for Leeds North West (Greg Mulholland), have campaigned on this issue. It is of course for the Chancellor to announce the Government’s decisions in this respect—I am sure that he has not pulled all those pints himself—but it is certainly the case that the beer and pub industry is stronger in this country, as part of a stronger economy, because of the decisions that this coalition Government have so far made.

Beer Duty

Andrew Griffiths Excerpts

Thursday 5th February 2015 Commons Chamber

[Andrew Griffiths (Burton) (Con)]

I am delighted to have secured this debate. I recognise that the final Adjournment debate of the week is not exactly the shift that every Minister wishes for, but I am delighted that she is here today for this important debate. It is important because I am the first MP for more than 10 years to be able to say that beer sales are on the up; beer sales are in growth. That is a direct result of the decision taken by the Chancellor and this Government to scrap the hated beer duty escalator, and to cut beer duty not once, but twice. It is those decisions that have led to the renaissance in brewing that we see at the moment.

In this short Adjournment debate, I intend to make the case to the Minister about why she should complete a hat-trick that would be more memorable than Michael Owen’s hat-trick when he put three past Germany in that magnificent victory for England. I pay tribute to all the people who helped to deliver that important scrapping of the beer duty escalator, and those two cuts. In particular, I pay tribute to the Campaign for Real Ale and its 170,000 members who led the campaign, lobbied Parliament and their MPs, and made the case so vigorously on behalf of the brewing industry and the beer that they love so much.

I also congratulate the British Beer and Pub Association that represents brewers and pub companies across the country, and the Society of Independent Brewers—SIBA. The Minister knows that there has been a renaissance in small brewers across the country. Some 1,700 brewers are now producing excellent beer across the country, and that is as a result of economic decisions taken by this Government as part of their long-term economic plan.

I also wish to thank the TaxPayers Alliance, which ran the Mash the Beer Tax campaign, and The Sun newspaper. As we know, The Sun is always on the side of the hard-working man and woman in Britain, and it got behind this campaign to cut beer duty so that Britons could enjoy one of those simple pleasures: a pint of great British beer. The Minister will know about the great support that has been shown for this campaign by the Burton Mail—an august publication. I had the privilege of sending her the front page of the Burton Mail, which supports this campaign for the third cut in beer duty.

[Tim Loughton (East Worthing and Shoreham) (Con)]

While revelling in the congratulations that my hon. Friend is dolling out left, right and centre, may I slightly rain on his parade? Although we are delighted with the abolition of the escalator, the last Budget, which of course introduced the 2% cut in beer duty and a freeze for spirits, actually increased duty on wine by 2.47%. As chairman of the all-party parliamentary wine and spirits group, may I ask whether he agrees that we need a better deal for wine drinkers as well?

[Andrew Griffiths]

I recognise the point that my hon. Friend makes, and I would be forced to agree with him as Mrs Griffiths is no stranger to a large pinot grigio. I point out that the campaign last time was led by a doughty Back Bencher who argued vociferously for cuts in alcohol duty, and I hope that there is some consistency in that argument in the weeks to come.

I thank colleagues on both sides of the House. Although the hated beer duty escalator was Labour’s design, colleagues from all political parties supported the campaign. I would particularly like to pay tribute to members of the all-party parliamentary beer group, the all-party parliamentary save the pub group and, of course, my colleague the hon. Member for Leeds North West (Greg Mulholland), who was instrumental in that campaign.

I am the MP for brewing. Burton is the home of British brewing, and some 5,873 people in my constituency are employed in beer and pubs. A thousand of them are young people, and it is interesting that this industry can offer great opportunities to the 16 to 25-year-olds the Government are trying to get into work and off the unemployment lists. The hospitality industry, and the pub industry in particular, represents a massive opportunity to help in that respect. I point out to the Minister that 1,136 people in Witham are employed in beer, pubs and brewing, so she will understand the issue’s importance.

In my constituency, the gross value to the local economy is £348 million, and we contribute £438 million to the Treasury—something that, I am sure, delights the Minister. Nationally, the industry contributes £10 billion in taxation. At a time when we want to pay off the debt and pay down the deficit, that contribution must not be underestimated. Beer and pubs are vital to this country, and 1 million people rely on the beer and pub industry for their employment. I have alluded to the fact that 46% of those people are between the ages of 16 and 24.

Beer is a success story. We brew the best beer in the world, and 82% of all the beer consumed in this country is brewed here by brewers big and small, producing a fantastic product. Although I understand the point made by my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), wine is imported into this country—[Interruption]—ostensibly, but I have sampled, as has Mrs Griffiths, some fine English and Welsh wines.

[Tim Loughton]

I am delighted to hear about Mrs Griffiths’s delectation of fruit-based drinks for ladies, as I believe someone calls them. Is my hon. Friend aware that there are now 448 commercial vineyards and 131 wineries in the United Kingdom, and that the hectarage given over to vineyards here has more than doubled in the past 10 years, with 4.5 million bottles of excellent quality, world-beating English wine produced in this country and not imported?

[Andrew Griffiths]

I absolutely understand the points that my hon. Friend makes, but I gently point out that seven out of 10 drinks that are drunk in pubs are beer. If we value our community pubs, we can support them by supporting the great British brewing industry. Beer gets people into our community pubs, which are the backbone of our society, and each pub contributes £80,000 a year to the local economy. Of course, some of them offer other services—they are the post office, the local shop, and offer many facilities. We have heard of groups who have meals on wheels in their pubs. Pubs play an important role, and, as I have said before, they form the fabric of our community: the great British pub.

[Sir Peter Bottomley (Worthing West) (Con)]

I congratulate my hon. Friend on winning the beer award at the marvellous evening that we had on the Terrace. Will he join me in thanking the pub trade and the brewers for their help in reducing drink-driving while maintaining the social life of the pub, where more controlled, sensible and responsible drinking takes place than in many other places?

[Andrew Griffiths]

Indeed. If we want to tackle problem drinking, our community pubs are the solution, not the problem. Encouraging people back into the pub is the way to tackle that. My hon. Friend talks about publicans. According to Pub Aid, £120 million is raised for charity each year as result of people supporting initiatives in our pubs. We should all support that.

When Labour’s hated beer duty escalator was introduced in 2008, we saw a duty increase of 42% in those few years. That hit beer sales, made pints less affordable and closed pubs. If we care about pubs, that should worry us.

[Sir Peter Bottomley]

A very short point, and it is not supposed to be too pointed—it is interesting that there is not a single Labour Member present for this important debate on beer.

[Andrew Griffiths]

I recognise the point that my hon. Friend makes. It is not lost on me that it was Labour that introduced the beer duty escalator, but as I said, many MPs on all sides supported the campaign for its abolition.

When the beer duty escalator was introduced, beer consumption fell by 16% across the board, and in pubs it fell by 25%. The decision by that Labour Government closed pubs—7,000 of them—and we lost 58,000 beer-related jobs as a result. The amazing thing is that although beer duty increased by 42%, beer duty revenue to the Treasury increased by only 12%. We can see the impact that the escalator had not only on our pubs and our brewers, but on the Treasury take—the goose that laid the golden egg and that Labour Chancellor choked it. We can see the folly of the escalator.

When the current Chancellor chose to scrap the beer duty escalator in 2013 and cut beer duty for the first time since 1958, he was cheered by 32 million beer drinkers across the country and 170,000 CAMRA members who had worked so hard to bring that about. Last year we saw that historic second cut in beer duty. My right hon. Friend was the first Chancellor in history to cut beer duty in two successive Budgets and I commend him for it. The cut was passed on by the industry. There are some who try to suggest that brewers or pub companies did not pass it on to their customers, but we have seen the lowest increase in beer prices since the 1980s—just 2.2%. When, as we are often told, we are suffering from a crisis in the cost of living, the fact that the Chancellor cut beer duty and therefore delivered lower beer prices so that hard-working men and women could enjoy one of life’s simple pleasures, is important.

Consequently, as I said earlier, we have seen a growth in beer sales for the first time in 10 years. That means brewers, publicans and all the related trades having business through their doors and are on the up, which must be good news. According to the British Beer and Pub Association, those two duty cuts and ending the escalator saved 16,000 jobs. Most importantly, confidence in the industry is up, confidence in the Government is up, and as a result some £1.1 billion is likely to be invested over the next 12 months. I have seen the impact in my constituency. Molson Coors is investing £75 million in its brewery in Burton, and Marston’s has invested over £20 million in its bottling plant in Burton. That is not just brewers on the up, but engineering and manufacturing—another success story.

When we made the case to the Chancellor two years ago, we said, “Cut beer duty and beer sales will go up; cut beer duty and the Treasury’s tax take will increase.” In results that would make Jonathan Isaby of the TaxPayers Alliance dance around his office in glee, we have proven that lower taxes for the brewing industry result in a better return for the Treasury. Even sales in pubs, which we have all been concerned about, have declined by less than 1% over the past 12 months. That is clear evidence that we are beginning to see a change, with investment and growth in our pubs. The last time we saw such a performance was in 1996, and strangely enough that was the last time we had a Conservative Government—cause and effect.

What has been the result for the Treasury’s tax take? Over the 12 months to November 2014, beer duty revenue actually increased by £39 million, and it is £15 million higher than it was in March 2014. Add the additional VAT and jobs-related taxes and we can see that cutting beer duty is great news for the Treasury. The Government have also cut business rates, helped with apprenticeships, and followed a long-term economic plan that is supporting small businesses. That all means the brewing industry and the pub industry have a great deal more confidence and are on the up.

However, hard-pressed British beer drinkers still pay 40% of all Europe’s beer duty, despite drinking only 13% of the beer. If we could cut beer duty just a little more, we would see more great British products being consumed. Of course, we are now exporting that great British product around the world, not only to France, Germany and other European countries, but to Japan and China. The industry has massive potential.

Madam Deputy Speaker, having listened to the facts and the evidence, I am sure you will agree that the Minister must now be thinking, “Why on earth wouldn’t I cut beer duty a third time?” The economic case, the social case and the jobs case have all been made. However, I want to remind her of one final consideration that she might not be aware of: her last two predecessors who decided to cut beer duty are now in the Cabinet—cause and effect. Cutting beer duty is good for the Treasury, good for the industry and good for our communities. I am sure that she is listening, and I hope that we will see a hat-trick in the Budget this year.

[The Exchequer Secretary to the Treasury (Priti Patel)]

I congratulate my hon. Friend the Member for Burton (Andrew Griffiths) not only on securing this debate, but on the reward he received this week for his lobbying and campaigning on behalf of the beer industry. I pay tribute to him for campaigning solidly over this Parliament on behalf of his constituents in Burton, the home of British brewing. He is a champion of the jobs, the investment and the economic security that the industry has provided. I also commend the passion he has shown in his work as chair of the all-party group on beer. It is one of the most popular all-party groups, unsurprisingly, given the effective leadership he has displayed. It has been a delight to work with him on various issues, both before and since becoming a Minister.

This week UK beer sales have increased for the first time in 10 years. That is a testament to the hard work that my hon. Friend has put in over the years in standing up for the beer and pub industries. The great British pub and great British brewers are institutions that we in Government wholeheartedly support. As we heard in the compelling case eloquently made by my hon. Friend, there is a very strong argument that the brewing and pub sector is a major part of the UK economy. It adds £22 billion to the UK’s GDP. It directly employs over 600,000 people and supports almost 900,000 people in total, including, as he said, a significant proportion of young people. There is a very strong skills base in the industry, and young people are part of that. As he said, it also boosts British manufacturing, and its exports are worth over £630 million.

Perhaps as importantly, pubs have been at the heart of British culture for centuries. Fifteen million people visit them each week. They are the cornerstone of our communities, and of tourism. As Members of Parliament, we all recognise that they play a strong and pivotal role in our local communities, particularly rural ones.

[Andrew Griffiths]

The Minister mentions tourism. Is she aware that visiting a great British pub is one of the key things that visitors to this country want to do when they arrive on these shores? Does she agree that we should be doing more to promote the great British pub as part of our tourism offer?

[Priti Patel]

My hon. Friend is absolutely right. We have spoken about this at the APPG. The pub is absolutely pivotal to boosting Great Britain’s brand. Tourism and our rural economies are part of that. When we speak about pubs, it is about enjoyment—the fact that people enjoy them. As a policy maker and a Minister, I sometimes think that that is not sufficiently taken into account.

The case for supporting pubs and brewers as institutions is overwhelming. We see that across the country, beyond pubs, in the supply chain and the wider industry. Maltings and other factors in the supply chain are crucial and pivotal to our economy.

The Economy and Living Standards

Andrew Griffiths Excerpts

Thursday 12th June 2014 Commons Chamber

[Mrs McGuire]

I remember it well, and there is now the mirror image of that: they are in government now, and they are calling for even more expenditure in their individual constituencies. That certainly puts a whole new slant on “Think nationally—or globally—and act locally.” It is almost as though there is no connect between the two.

I first want to welcome two elements of the Queen’s Speech, however. One is the commitment to continue to implement new powers for the Scottish Parliament, which I hope will be done within the context of a United Kingdom—the “No” badge I am wearing today has absolutely nothing to do with me not wanting anybody here to speak to me.

I also welcome the increased penalties for those not paying the national minimum wage, but I say to the Government that it is one thing to increase penalties, but it is another thing actually to enforce the law. There is absolutely no point in increasing the penalties if there is not going to be the enforcement welly behind the national minimum wage to tackle employers who are behaving illegally.

I want to concentrate on a couple of areas. One is zero-hours contracts, which the Chancellor blithely dismissed. Yes, zero-hours contracts have, of course, been with us for a long time, and, yes, they can in some circumstances be a useful resource in managing a work force, but the difference between what happened in the past and what is happening now is that zero-hours contracts have effectively become part of the mainstream in how our employment market is operating.

Let us consider a couple of companies that have a presence in most of our areas. Sports Direct has 23,000 workers, and 20,000 of them are on zero-hours contracts. That is 86% of its work force. That is not about Sports Direct having flexibility. Some 80% of Wetherspoon staff are on zero-hours contracts, too. That is not just about managing the bulges in customer numbers at certain times of the day or at the weekend, but is a policy decision by those companies to use zero-hours contracts as an employment tool. What is even worse is that having 1 million or so workers on zero-hours contracts helps to disguise the unemployment figures—[Interruption.] Is the hon. Member for Burton (Andrew Griffiths) talking to himself or does he want to intervene on me?

[Andrew Griffiths (Burton) (Con)]

The right hon. Lady condemns companies that employ people on zero-hours contracts, but will she condemn the more than 60 Labour MPs who also do so?

[Mrs McGuire]

The hon. Gentleman was obviously so busy talking to himself that he did not hear what I was saying, which was that there are instances in which zero-hours contracts might well be suitable. However, a zero-hours contract approach is now being embedded in our mainstream way of employing people. That stokes up people’s uncertainty about their income, creates instability in their lives and leaves them unable to get finance, even for rented accommodation. Those who think that these contracts provide numerous hours’ work each week should note that, according to the Office for National Statistics, an individual who worked for just one hour within its survey period was considered to be employed. The attractive mirror image to this situation for the Government is that they can describe those people as having come off the unemployment register, creating a false figure for the unemployment in our constituencies. The previous Tory Government used to shunt people on to incapacity benefit. The present Government are using zero-hours contracts in much the same way.

The second issue that I want to address is how people can afford housing in the present environment. According to the Scottish Parliament information unit, the average pay in Scotland is £26,472. The average price for a semi-detached house in my constituency is £140,000. I know that Members who represent constituencies in the south of England might think that that is not a high price, but we must ask ourselves how on earth people are going to get a mortgage or other finance for such a house on a salary of around £26,000 a year. It just does not compute. In my area, we have strong tourist accommodation and food industries, in which the average wages have actually dropped. They now average £10,558 a year.

Taking all those factors together, we find a situation in which many people in this country do not feel that they are benefiting from the rosy picture painted by the Chancellor earlier. We do not have to move far from this Chamber to find evidence of that. I wonder how many of us think about how our low-paid workers in the House of Commons dining rooms or in the Tea Room are even managing to get into work. Some of them are on zero-hours contracts. We need to look at the long-term implications for those people.

This Queen’s Speech is, I hope, the last under this Government. I also hope that it predates a new Queen’s Speech after the general election under a Labour Government led by my right hon. Friend the Member for Doncaster North (Edward Miliband). I can find no better description of the Conservatives than that used by Disraeli. He said of Conservatism that it

“offers no redress for the present, and makes no preparation for the future.”

This Queen’s Speech fulfils both those criteria.

--- Later in debate ---

[Andrew Griffiths (Burton) (Con)]

I am delighted to take part in this important debate on the Queen’s Speech and to congratulate the Chancellor on what he has done for our economy in the United Kingdom and particularly for the economy in Burton. I take part in the debate because I was urged to do so by one of my constituents at a thriving Burton business club lunch recently. He said to me, “Andrew, will you go into the Chamber and urge George to carry on with his long-term economic plan. Will you tell him not to listen to all that Balls?” I assume that he was talking about the shadow Chancellor.

My constituent was absolutely right, because the Government’s long-term economic plan is working for my constituents and my businesses in Burton and Uttoxeter. When I spoke to those entrepreneurs and small business men and women at Burton business club, they told me about the confidence they have in our economy. They have full order books, they are taking on new employees and they are optimistic about the future for their businesses and for our economy. If that is the case, we must continue with our long-term economic plan because in Burton it is working.

Since I became the Member of Parliament for Burton, we have seen unemployment reduce by 43%. Today’s Opposition amendment talks about opportunities for young people, but I talk about the 1,100 apprenticeships that young people in my constituency have started as a result of the policies of this Government. The Opposition talk about the need to help people in poverty, but I talk about the 900 families who now have the security of a job as a result of the policies of this Government. The plan is working in Burton.

Obviously, this debate is on the economy and I want to touch on a particular issue to do with that and with the Queen’s Speech, and that is the 900,000 people employed in the beer and pub trade. I come from the home of Britain’s brewing industry where 4,000 people are employed in beer and pubs, so this issue is hugely important for the families that rely on that important industry and not just for those who enjoy great British beer and our community pubs. I am very pleased to see in the Queen’s Speech legislation to protect our publicans up and down the country, as many Members on both sides of the House have voiced their concerns about how pubcos have treated some of our landlords. I was one of those who stood up and spoke about self-regulation, and I have to admit that I was wrong. The need for legislation has been demonstrated and I am pleased that the Government have come up with a proposal that will protect publicans and bring real transparency and openness into the system. Our pub industry will flourish as a result.

I am also pleased that Ministers recognise the dangers in the proposal for a free-of-tie option. As the Department for Business, Innovation and Skills economic report by London Economics proved, that would have closed almost 2,000 pubs virtually overnight. I am pleased that a statutory code and a regulator will give real protection to landlords and publicans, but I have some concerns. It has always been the stated aim of this Government to cut red tape and regulation, with the one in, two out rule, and I hope that they will bear that in mind when they consider the proposed costs of the adjudicator. Self-regulation costs the industry about £100,000 a year, but it is estimated that the proposal for the adjudicator will cost £5 million a year, which will be funded by a levy on the industry. We must be careful that in our desire to protect those publicans we do not set up a quango that will end up costing the industry and that will be over-burdensome.

As the Member of Parliament for Burton, where Marston’s is based, I am also concerned that its franchisees will be caught up in this. I urge the Government to reconsider whether this legislation is aimed at capturing the franchise model. It is worth while thinking about that. I am also grateful that the Government chose not to accept the proposal for a mandatory guest beer. We all recognise the concerns of SIBA, the Society of Independent Brewers, and lots of small breweries that that proposal would have hit the cask ales and Britain’s smaller breweries, and that we would have seen imported foreign lagers as the guest ale.

I commend the Government for this Bill and hope that we can see it speedily enacted without too much meddling or interference to damage it. As a result, publicans, the British beer industry and the British pub industry will thrive across the country.

Oral Answers to Questions

Andrew Griffiths Excerpts

Tuesday 11th March 2014 Commons Chamber

[Nicky Morgan]

First, may I express my sympathy for anybody whose job has been either lost or put at risk? I know that Wales Office Ministers have been in close contact with energy-intensive industries in Wales and have had discussions with both the Department for Business, Innovation and Skills and me about these issues. The Government recognise that the rise in energy costs is a key issue for many businesses, especially given the lower than expected European carbon price, and we will of course listen to all concerns expressed in relation to these issues.

[Andrew Griffiths (Burton) (Con)]

14. How much beer duty was paid by people in each income quintile in each year from 2008 to 2013.

[The Economic Secretary to the Treasury (Nicky Morgan)]

Budget 2013 ended the beer duty escalator and reduced the tax on beer by 1p a pint to help support pubs. The Office for National Statistics publication “The effects of taxes and benefits on household income” provides estimates of the amount of beer and cider duties paid by households in each quintile, and in 2011-12 households in the bottom quintile paid £87 while households in the top income quintile paid £208.

[Andrew Griffiths]

Given that we have seen revenue to the Treasury increase, £400 million-worth of investment by the industry in jobs and growth, and brewers and businesses benefiting from the cut in beer duty, does the Minister agree that the Chancellor was right to scrap Labour’s hated beer duty escalator? Given that a trip to the pub is one of our few pleasures in life, does she accept that it would be folly to increase beer duty in the Budget?

[Nicky Morgan]

Of course I agree with the actions that my right hon. Friend the Chancellor of the Exchequer took at the last Budget, and I congratulate my hon. Friend on the campaign he ran on behalf of pubs, both in his constituency and across the country. I have seen the confidence that the reduction in beer duty has given to Britain’s pubs. The public finances already assume that beer duty will rise by less than other alcohol duties this year, after we ended that beer duty escalator. As my hon. Friend will know, we keep all taxes and duties under review.