Beer Duty Rates

Debate between Andrew Griffiths and Hugh Gaffney

Tuesday 25th June 2019 Westminster Hall

[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.