Beer Duty

Christian Matheson Excerpts

Tuesday 7th March 2017 Westminster Hall

[Christian Matheson (City of Chester) (Lab)]

It is a great pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for St Austell and Newquay (Steve Double) on his speech; he told us that he was a substitute, but that was certainly not the introductory speech of a substitute. May I also take this opportunity to welcome my next-door neighbour and good friend, the hon. Member for Weaver Vale (Graham Evans), to his place? He is the chairman of the all-party parliamentary beer group. I was with him in the Terrace marquee the other night where, I must say, I enjoyed the award-winning beers from the Campaign for Real Ale, including Binghams vanilla stout, which I enjoyed—but only in moderation, of course.

I have had the pleasure of going to two pub openings in my constituency in the past couple of weeks. I went to the Handbridge pub, which has been refurbished by Punch Taverns, and I was very pleased to go to the Bull and Stirrup in Chester, which is a historic pub, particularly for the labour movement, to open it with the actor Ricky Tomlinson. It has been the beneficiary of a £2 million refurbishment courtesy of Wetherspoon’s. It employs 70-odd people—most of them very young—and is an excellent example of the fact that pubs and the industry provide employment, including at entry level, for people looking to make their way in their career.

I want to speak briefly about one of the big employers in my constituency, Admiral Taverns, which I am proud to represent. It employs 145 people in my constituency, has 850 pubs across the UK and is consistently winning awards. It was the leased and tenanted pub company of the year in 2013 and 2016, which makes it the current holder of that prestigious award, and I can tell Members this morning that it is again shortlisted for community pub operator of the year. The hon. Member for St Austell and Newquay talked about the importance of community pubs. I worked with Admiral Taverns when it closed the Centurion pub in Vicars Cross in my constituency. I worked with community leaders Trevor Jones and Bob Hindhaugh, and we managed to persuade Admiral Taverns to reopen it with community leadership. That was a tough business, because the numbers had to add up, and part of the reason for the closure was the high beer taxation levels. I have worked with Admiral Taverns on a couple of projects since, and I am proud to do so. It is keen to see a continued light touch in the taxation of the pub sector.

In this short contribution I want to draw the Minister’s attention to the conflict between beer duty and business rates. I am told that business rates for pubs are calculated on turnover, but that that turnover includes beer duty. As Admiral Taverns point out that is, therefore, a double whammy—I believe that is the phrase, Sir Roger. They are being taxed on taxation, because turnover includes beer duty. I ask the Minister whether levels of beer duty or the business rates calculations can be taken into account.

[Louise Haigh (Sheffield, Heeley) (Lab)]

I want to reflect on that briefly, because my hon. Friend is making an exceptionally important point. Even before the re-evaluation of business rates, which will hit pubs particularly hard, pubs were paying 2.8% of the total business rates bill but only accounting for 0.5% of total business turnover. That is a crucial area that I hope the Minister will take into account and feed into the Budget negotiations for tomorrow.

[Christian Matheson]

I am grateful to my hon. Friend for making that point. There does seem to be a discrepancy. I would not like to think that pubs, which play such an important part in communities, as we correctly learned from the hon. Member for St Austell and Newquay, are seen as a soft touch and an easy hit.

I am keen to convey on behalf of my constituents, particularly Admiral Taverns, with which I have an excellent relationship, that there needs to continue to be a light touch to allow the sector to flourish. We heard from my right hon. Friend the Member for Warley (Mr Spellar), who is no longer in his place, about the effect on microbreweries when there was a reduction in taxation—that sector of the business expanded. I believe that could also help in the pub sector and in community pubs, but there is a real problem in the conflict between business rates and beer duty, and I ask the Minister to look at it.

[Several hon. Members rose—]