Beer Duty

Claire Perry Excerpts

Tuesday 7th March 2017 Westminster Hall

[Steve Double]

I wholeheartedly agree. Lower taxes generally encourage investment and growth in a sector, and I will press for that as the debate goes on.

[Claire Perry (Devizes) (Con)]

Does my hon. Friend share my sense of pride that it was a Conservative Government who in 2012 finally put an end to the beer duty escalator—a measure that had led to duty going up 42% between 2008 and 2012? Following that, in 2014 beer sales increased and an estimated 21,000 jobs were created in the industry.

[Steve Double]

My hon. Friend may have been reading my notes, because that is a point I will come on to highlight.

There are many reasons why pubs have closed. Some of them were badly managed, and some lacked investment to keep the facilities up to date. Although I believe that the smoking ban was the right thing to do, and it is popular among many pub goers, we have to acknowledge that it stopped smokers visiting the pub quite so often. There are also changing social habits, with more people drinking at home as a result of cheap alcohol available in supermarkets and other outlets.

Those factors have all contributed, but it is also undeniable that the dreadful and despised beer duty escalator introduced in 2008 had a devastating effect on the industry. Annual duty rises under the escalator led to beer duties rising to among some of the highest anywhere. Even now, following successive years of duty reduction by this Conservative Government, our pints remain heavily taxed at around 52p on a 5% alcohol by volume pint, compared with 4p in other key beer-brewing nations such as Germany and Spain—an enormous and disproportionate difference that needs to be addressed.

There is much more happening now, with a revolution in the old craft of brewing and selling beer to the UK’s 32 million beer drinkers. Numerous microbreweries have opened up and craft beer and real ale are rising in popularity. I have the great privilege of having a great example of a local family-run brewery in my constituency. St Austell Brewery has been a roaring success in recent years, particularly since the launch of its excellent Tribute ale. It now makes many excellent beers, and I spent an enjoyable day during the recent recess assisting master brewer Roger Ryman in making a batch of Proper Job. I count the fact that I managed to make more than I drank that day as a notable success.

While it is right to recognise concerns about alcohol abuse, we must note that the majority of people enjoy healthy levels of drinking. Given the social benefits that come with a visit to the local pub, it makes no more sense to celebrate pub closures than it does to close roads because some motorists speed.

--- Later in debate ---

[Claire Perry (Devizes) (Con)]

I join others in congratulating my hon. Friend the Member for St Austell and Newquay (Steve Double), and my hon. Friend the Member for Gower (Byron Davies), who cannot be here, on securing this important debate.

I have spoken several times in similar debates over the years. As I am sure Members know, I am the proud representative of Wadworthshire. I have in my constituency Wadworth Brewery, which brews iconic beers such as 6X, Swordfish and Bishop’s Tipple. It has 240 pubs in its chain and employs about 500 people. Nobody who visits Devizes can fail to be struck by the incredibly iconic brewery building, in which brewing has taken place since 1875, and Max and Monty, its two dray horses, who often cause traffic chaos when delivering to local pubs, although nobody minds, because they are a symbol of a wonderful local business. As well as Wadworth, I have Ramsbury Brewery, Shed Ales, World’s End Ales, Three Castles Brewery, Stonebridge Ales and Eastbury Brewing Co. in my constituency, all of which report that things are definitely looking up.

Why did I come along today to support the call for a cut in beer duty? I must confess that I was a little sceptical about what the impact might be when the original tax cuts were announced, for many of the reasons that have been mentioned: we drink in a different way; we often prefer to drink at home; supermarkets have historically used alcohol as a loss leader to generate foot traffic; the smoking ban has hurt businesses; and the drink-driving laws, which I absolutely and heartily support, have changed people’s way of being entertained. However, it is obvious that since we abandoned the beer duty escalator and cut beer duty in 2013—I am thinking of the billboard outside the Red Lion pub that day with a big sign saying, “Cheers, George!”; the former Chancellor should indeed be applauded for it—there has been a material impact on the industry.

I know that the Opposition Members present would not have voted for this, but in 2008 taxes on beer were hiked twice: by 9% in March and then by 8% in December. The escalator was then whacked on at inflation plus 2%, which led to a whopping 42% increase in overall duty between 2008 and 2012. As we have heard today, thousands of pubs exited the industry. It was a significant hit to an industry that we all know and love, and that had a major impact on employment in many of our constituencies.

Since then, with relatively modest measures—the abandonment of the escalator and a reduction in duty—we have seen some really rather extraordinary things. In 2014, beer sales increased for the first time in a decade. Oxford Economics has estimated that more than 20,000 more new jobs have been created in the sector than there would otherwise have been. That shows that very small changes in taxes can have a material impact. I submit that what the Exchequer is giving up in tax duty is being more than recouped from the increased income tax paid by the now thriving businesses and the employment contributions coming in.

On the subject of employment, let me mention a couple of very important things that are happening in my constituency. As a result of the change in the business climate, companies such as Wadworth are now substantially increasing their own investment programmes; indeed, investment in Wadworth’s 240 pubs will increase by 30% this year. I am proud to have been associated with the reopening of some wonderful pubs that are now thriving, such as the Three Crowns in Devizes: morning, noon and night, groups of people are going in for coffee and sampling the wonderful beers and delicious food. That is happening not just in my constituency but right across the country. I was fascinated to hear from my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) that it is also having an impact on the supply chain—a piece of good news for hop production that I did not know about.

I support future investment and the increase in apprenticeships. Wadworth now has 62 apprentices—it has been investing hugely in my area—but it is facing pressures, including the apprenticeship levy and the increase in rates that we have discussed. It seems to me that to support the industry, stimulate demand and encourage companies to invest their own capital so that we can have a thriving beer, pub and hospitality industry, this relatively small adjustment in the Budget would be very welcome indeed.

Willenhall Crown Post Office

Claire Perry Excerpts

Wednesday 26th March 2014 Commons Chamber

[Mr Speaker]

Order. Before I put the Question on the Adjournment, the hon. Member for Devizes (Claire Perry) has a point of order relating to the Division at 3.23 pm, in respect of which she was a Teller.

[Claire Perry (Devizes) (Con)]

On a point of order, Mr Speaker. As one of the Tellers on the motion on the charter for budget responsibility earlier today, I have to report that the correct number of Noes was 23, not 22 as called—mea culpa.

[Mr Speaker]

I am extremely grateful to the hon. Lady for that helpful point of order, as will be the House.

Question put and agreed to.

Mix 96 (Digital Radio Switchover)

Claire Perry Excerpts

Thursday 28th November 2013 Commons Chamber

[Mr Vaizey]

And let me continue in that vein by mentioning another silent hon. Friend, our Whip, who represents Spike FM.

[Claire Perry (Devizes) (Con)]

Spire FM.

[Mr Vaizey]

I am so sorry. Her writing is appalling, Mr Speaker.

Oral Answers to Questions

Claire Perry Excerpts

Tuesday 12th March 2013 Commons Chamber

The Chancellor of the Exchequer was asked—

[Claire Perry (Devizes) (Con)]

1. What recent assessment he has made of the UK’s business competitiveness.

[The Chancellor of the Exchequer (Mr George Osborne)]

Under this Government, Britain has moved into the top 10 of the most competitive places in the world to do business, according to the World Economic Forum; our tax system is seen as one of the most pro-business in the world; market interest rates are at record lows; red tape has been cut by almost £850 million in the past two years; and exports to China, India and Brazil are up by almost two thirds since 2009.

[Claire Perry]

I thank the Chancellor for that reply. Is he aware that, according to accountants KPMG, Britain is now the best place in the world to do business, for the first time ever? That is very welcome news for businesses in my constituency, but what more do we need to do to maintain and consolidate that position?

[Mr Osborne]

My hon. Friend refers to the remarkable survey by KPMG that found that in the space of three years Britain has gone from having one of the least competitive business tax systems in the world to having the most competitive one; we are ahead of Ireland, the Netherlands and Luxembourg, as well as, of course, the United States, France and Germany. That is because of the hard work we have done on corporation tax and on the controlled foreign companies regime. Of course, we have to go on making this country the most competitive place to do business, so that we can succeed in the global race.

Economic Policy

Claire Perry Excerpts

Monday 25th February 2013 Commons Chamber

[Mr Osborne]

As I said, the credibility of the Government’s economic policy is tested every day in the markets, and we are borrowing at record low interest rates. As I have said many times, the idea that the problems we inherited could be solved overnight was patently ludicrous. They are some of the worst economic problems that any incoming Government have ever faced in British political history. We are dealing with those problems. The deficit is down by a quarter, 1 million jobs have been created in the private sector, and interest rates remain very low. That is the test of the success of our policy.

[Claire Perry (Devizes) (Con)]

I shall be calm, Mr Speaker. Will the Chancellor confirm that two other major rating agencies still maintain Britain’s triple A credit rating and that the credit default swap rate—another measure of default risk—is at 51 basis points today, one of the lowest levels in the world?

[Mr Osborne]

My hon. Friend is right about the credit default swap rate. As I have said, the credibility of our policies is tested every week when we have to borrow all this money to pay for Labour’s deficit, and we are borrowing it at record low rates.

Autumn Statement

Claire Perry Excerpts

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

This Government have introduced the UK Green Investment Bank, which is now making investments. I have also introduced a carbon price floor, which is recognised around the world as an effective way of ensuring the decarbonisation of our economy in a market-driven way. We have just published the Energy Bill and a levy control framework that would allow for new investment in renewables through the rest of this decade. The industry has that certainty, alongside the gas strategy. On the decarbonisation target, we are going to take a power in the Bill to set a target, but that will be a decision for after the next carbon budget, which will happen in 2016. That is a perfectly sensible and rational approach to take.

[Claire Perry (Devizes) (Con)]

I congratulate the Chancellor on a statement that was fair, transparent, business-friendly and pro-growth, and that confirmed that the deficit is not only not rising but falling in every year of this Parliament. With 19 days to Christmas, which of his family-friendly measures—including scrapping the fuel duty increase, freezing council tax and raising the personal allowance next year—does he think will do most to benefit British families?

[Mr Osborne]

We have had to take some difficult decisions on welfare uprating and on tax threshold uprating, but I have tried to help families where I can with the personal allowance and with fuel duty. I have also tried to help businesses, and the annual investment allowance increase to £250,000 will be extremely welcome.

Bank of England

Claire Perry Excerpts

Monday 26th November 2012 Commons Chamber

[Mr Osborne]

I will not speak for the new Governor, but I am sure he could be asked that question. I am pretty clear that he would support the pound, because he has seen at first hand through the Financial Stability Board some of the problems that have arisen in the euro. I reassure the hon. Gentleman that any decision to ditch the pound would be one for the Government of the day and the House of Commons, and while this Government are in office we will keep the pound.

[Claire Perry (Devizes) (Con)]

In Mr Carney, we have a man with unprecedented experience of financial stability. We also have an Office for Budget Responsibility that publishes transparent, independent numbers, and we now have a structural and regulatory plan for the banking system and a Government committed to restoring faith in the public finances. Does the Chancellor agree that the risk of boom and bust is therefore diminished?

[Mr Osborne]

I will not make the mistake of the last Prime Minister and claim to have abolished boom and bust. I do not know which young adviser of his put that idea into his mind. [Interruption.] With transparent and independently audited public finances, an excellent central bank Governor and new responsibilities for the Bank of England, we have a better framework than the one that we inherited.

Professional Standards in the Banking Industry

Claire Perry Excerpts

Thursday 5th July 2012 Commons Chamber

[Mr Osborne]

The motion talks about an inquiry under the Inquiries Act, but all the inquiries that have taken place under that Act have taken longer than one year, and the only one that took less than two years was into the tragic explosion at the plastics factory in Glasgow. The idea, then, that we could have a full public judge-led inquiry, while criminal prosecutions are taking place, and that it could conclude inside 12 months is completely fanciful—and the Labour party knows it. And by the way—[Interruption.] Calm down. That presents the House with a serious decision, because if we do not have the results of a broader inquiry, we will not be able to amend the banking Bill, when it is introduced into Parliament next January, in order to change the law and adopt the conclusions of the inquiry. We have one of two choices, then. We can either delay the inquiry—[Hon. Members: “Hooray!] We can either delay the introduction of the Vickers Bill or, as I say, we will not be able to amend it in this Parliament.

[Claire Perry (Devizes) (Con)]

The whole House will be aware that the banking industry employs 1 million people and contributes £60 billion in income in direct corporation tax, with employees contributing a further £25 billion in income tax. Banking is Britain’s biggest export industry and it has suffered enough as a result of the appalling regulatory regime and the failure of moral compass. Does the Chancellor agree that it is imperative that we sort this out and get on with the inquiry?

LIBOR (FSA Investigation)

Claire Perry Excerpts

Thursday 28th June 2012 Commons Chamber

[Mr Osborne]

The BBA is concerned about what has happened and has already instituted a review into the operation of LIBOR. I should like to hear its thoughts on that, but we need to look at the regulation of the rate and its independence. LIBOR is a very important rate that is used to set mortgage and loan rates for pretty much everyone in the country, so we want to make sure that what happened never happens again.

[Claire Perry (Devizes) (Con)]

When I heard about the situation, it made me think that “light touch” should be substituted with “clueless”. I am extremely concerned about the damage to Britain’s international reputation as a world-leading financial centre. Has the Chancellor had any conversations with his international counterparts to keep them apprised of the investigation, and does he think this is happening in other markets?

[Mr Osborne]

The fact of the investigation was something I discussed with Finance Ministers and representatives of other Governments, but I have not spoken with any of them since the FSA report was published yesterday because the issues immediately before us are about Britain and a British bank. As I indicated in my response to my hon. Friend the Member for Bury St Edmunds (Mr Ruffley), however, a number of international banks were potentially involved, such as UBS and Citigroup, which are not British banks and are in part regulated by overseas authorities. The whole FSA investigation is part of a joint international effort with the US Department of Justice and the Securities and Exchange Commission.

Changes to the Budget

Claire Perry Excerpts

Monday 11th June 2012 Commons Chamber

[Mr Gauke]

There have been no such changes. HMRC produced operational guidance, which I understand was misinterpreted by the industry. HMRC has clarified its guidance, but there has been no change in the policy or operational position relating to skips.

[Claire Perry (Devizes) (Con)]

Marshall’s Bakery in Pewsey, which is in my constituency, will be delighted by the news, as the Minister will know because he received a large petition from its customers. I am proud to be part of a Government who listen to people, but will the Minister please assure me that he will never, ever listen to any economic advice from the Labour party, whose view is that the way to get out of a borrowing crisis is simply to borrow more?

[Mr Gauke]

I can assure my hon. Friend that we will not be listening to those who think that the best solution to debt is to borrow more.