Hospitality Sector

Brian Mathew Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Brian Mathew (Melksham and Devizes) (LD)]

As the Member for Melksham and Devizes, I represent many rural villages and communities, a number of which I visited over recess. I have long been struck by the importance of the village pub as a hub of community—a place for good conversation and friendly banter, and for connecting with friends and neighbours, which is in fact vital for good mental health. Indeed, while on my summer tour of the constituency, I hosted a drop-in session in the lovely village of Urchfont, outside the Lamb, a friendly community public house.

In communities such as the one I represent, transport links and broadband connectivity can, on occasion, leave much to be desired, creating in their wake a sense of isolation and loneliness, especially for those working at home, raising children or trying to enjoy their well-earned retirement. In such instances, a feeling of community, of knowing one’s neighbours and of having someone to talk to becomes so important. In rural villages, it is often the pub that makes that possible. We have all heard the headline statistics—the closure of 1,100 pubs and restaurants since the tax on jobs was introduced in last autumn’s Budget, leaving 84,000 people out of work, with two pubs shutting every day—yet those statistics do not show the whole impact, with landlords and bar staff often putting in superhuman efforts to try to keep their businesses afloat.

I recently met my constituent Hannah, who runs the Swan at Enford. She came to talk to me about the increasing pressures that her business has faced since the Budget. In addition to diversifying her business, including by running a butcher’s shop, the Swan plays a vital and diverse role in the community, running a monthly “hub in the pub” event and helping with the yearly village fête and fireworks night. However, the costs on the business have risen exponentially since the Budget. The cut to hospitality relief has more than doubled the business rates she must now pay, from £167 to £444 a month. That, combined with the increase in employer national insurance contributions, means that landlords like Hannah are under greater financial pressure than ever.

Given that taxes make up 40% of turnover and that £1 in every £3 goes to His Majesty’s Revenue and Customs, with just 12p made on each pint sold according to the British Beer and Pub Association, surely it is time for the Government to review the burden that they are placing on these vital hospitality businesses. If the pressures continue, we will likely see more and more villages being stripped of their pubs and community spaces; greater numbers of people will prefer to drink at home. If the Government do not act, we risk losing the time-honoured tradition of the farmer drinking shoulder to shoulder with the accountant, the builder with the postie and the vicar with the carer—in short, the bedrock of village life.

In addition to lowering the tax burden on those businesses, the Government should also look at the support they can offer to community pub schemes, through which villagers can come together to buy and run their local pub.We have already had one such success in my constituency. The Hop Pole in Limpley Stoke offers a shining example of such schemes, and I hope to see this success replicated by the Friends of the Ivy in Heddington, who I am proud to support in their effort to get their local reopened.

[Matt Rodda]

The hon. Gentleman is making an excellent point about the importance of pubs as the heart of our local community life, and that is the case for towns as well as for villages. Does he agree that the measures announced by the Deputy Prime Minister yesterday to support community assets will help exactly the type of pub he is describing, and would he perhaps like to offer a word of support and congratulate her on her work on this?

[Brian Mathew]

I thank the hon. Gentleman for his comments, but more is needed. The Minister’s Department must support these schemes and the pub trade or risk losing a vital component of rural life.

Lastly, let me make the point that profitable businesses pay taxes, but closed pubs pay no taxes.