Beer Duty Escalator

Jim Cunningham Excerpts

Thursday 1st November 2012 Commons Chamber

[Andrew Griffiths]

I think I am in danger of breaking the record for the number of interventions taken, but I will give way to the hon. Member for Coventry South (Mr Cunningham).

[Mr Jim Cunningham (Coventry South) (Lab)]

I thank the hon. Gentleman for giving way. As he has said, since March 2008 the duty has gone up by 42%, which is surely not sustainable. It has had an effect on pubs since 2008, and over the past 10 years at least 18,000 pubs have closed.

[Andrew Griffiths]

The hon. Gentleman makes a valid point. We should consider the impact that the beer duty escalator has had on our brewers.

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[Mr Hamilton]

I could not agree more. As a side issue, the central location of television soap operas is the pub. Things might be exaggerated on television, but pubs are about families and people getting together. Pubs are controlled environments where people look after one another. It is not uncommon for the bar steward to say to someone who is too drunk, “You’ve had enough. Away you go.” Somebody might look after someone who is too drunk in the pub. Drinking at home is uncontrolled and causes far more bother. Another problem we must face is that, nowadays, people—youngsters especially—meet in houses and get drink-fuelled before going out to the nightclubs.

[Mr Jim Cunningham]

Does my hon. Friend agree that one big problem with our high streets is the fact that there have been a lot of pub closures? Working men’s clubs are also affected. Are they not contributing factors to why we have ghost city centres, as we call them these days? A commission is looking into that.

[Mr Hamilton]

It is also the case that it is not just about pubs and the price of beer. Pubs, and especially clubs, have a far wider role. My local club, the Dalkeith miners club, has about 25 different organisations, including ones for kids, using its big halls during the day, and it is looking at other avenues. In many cases, clubs are community centres where no other community centre exists. They become the focal point for everyone.

I know that other hon. Members will raise a host of issues, but I have a specific point I wish to make. Surely it is not beyond the wit of the civil servants in the Department to come up with a mechanism that would tax a 50-pint cask of beer differently from anything else. That would allow draught beers to be taxed at a different rate—nobody is going to go to Tesco and buy a 50-pint cask and carry it home. Draught beers, ciders and lagers could be taxed differently.

--- Later in debate ---

[Grahame M. Morris]

My right hon. Friend makes a really good point, and I hope the Minister is taking note.

As we all know from our constituencies, pubs are a vital part of our social life and a social hub. No matter what sort of area we represent, be it Labour, Tory, Lib Dem or nationalist, be it in the north or the south, be it countryside or urban and be it wealthy or poor, public houses are the hubs of our communities. Just as important is the fact that pubs and brewing are vital to the UK economy. Other hon. Members have mentioned the figures, so I will not repeat them, but the sector makes a huge contribution—I believe it is in excess of £20 billion. I believe that the Minister acknowledges that the proposals in the beer duty escalator would be revenue-neutral—they would not generate any additional revenue for the Treasury—so what can be the justification for continuing with it? The only answer I can come up with is that this is part of another public policy agenda—perhaps the Minister can enlighten us. Might it be an issue of public health? Perhaps the Government think it desirable to force up the price of alcohol to dissuade people from consumption. We have heard from various hon. Members that the consequence has actually been the reverse, so perhaps this is a perverse application of policy, resulting in the public buying beer, wine and spirits from the supermarkets in cut-price deals, and consuming them at home. There is a strong case for reviewing the escalator.

[Mr Jim Cunningham]

Does my hon. Friend agree that this issue affects not only pubs, but working men’s clubs up and down the country? We are in danger of destroying our cultural heritage, whereby the family could go out on a Sunday and have an entertaining afternoon in the pub as a family unit. That whole thing is being destroyed, as we have lost a large number of working men’s clubs in Coventry, as well as pubs.

[Grahame M. Morris]

I absolutely agree with my hon. Friend, and a similar point was made by my hon. Friend the Member for Midlothian. I am a strong supporter of working men’s clubs and the whole ethos of inclusivity, so I completely agree with that point.

In the limited time available to me, I want to mention something that has been alluded to by one of my colleagues: it is time for the Government to be much more proactive, not only to help the pubs struggling now, but to boost growth in the pub and brewing industry, as it could be a vital engine of economic growth. If that is the strategy, we have an opportunity to pick up the baton and run with it. The previous Government went so far as to appoint a Minister with special responsibility for pubs, as has been mentioned. That was my right hon. Friend the Member for Wentworth and Dearne (John Healey), who came up with some excellent ideas in a 12-point plan, which was agreed with the trade and CAMRA. I hope that the current Minister is familiar with that; it would be beneficial if he could build on it. That would create vital jobs and build on a great UK manufacturing success story.

Our British beer is famous around the world and our pub culture is envied by many countries. There is also the multiplier effect: one job in brewing supports one in agriculture, one in retail, one in the beer supply chain and 18 in pubs and clubs. We are all concerned about the wider economic implications and I urge hon. Members on both sides of the House to support the motion.