Pubs Code 2016

John Lamont Excerpts

Wednesday 24th January 2018 Westminster Hall

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

It is a pleasure to serve under your chairmanship this afternoon, Mr Robertson. I congratulate the hon. Member for West Bromwich West (Mr Bailey) on securing this important debate.

As right hon. and hon. Members are aware, the pubs code does not apply to pubs in my Scottish constituency of Berwickshire, Roxburgh and Selkirk. However, that does not mean that this debate is not important to pub owners across Scotland. One of the real positives of devolution is our ability as legislators to learn from, improve on and replicate any legislation passed in other nations of our United Kingdom, if it is shown to be effective. There are plans for a similar pubs code and adjudicator in Scotland in a private Member’s Bill promoted by Neil Bibby, a Labour Member of the Scottish Parliament. He believes that tied pubs in Scotland would

“'be subject to similar legislation, protection and opportunities as those in England and Wales”

if his Bill became law.

Although not perfect, the protection now offered in England and Wales is perhaps evidence that Government intervention might be the answer to helping pubs thrive, and I am sympathetic to a cause that looks to make this equal across all of the United Kingdom. However, it is worth reminding hon. Members that the pub landscape in Scotland is very different from that in England and Wales. Most pubs in Scotland are independent free trades, whereas in England the majority are tenanted, so it remains unclear as to how effective the proposed Bill in Scotland would be. I look forward to hearing what my MSP colleagues in my party and others make of the legislation.

I am supportive of anything that can be done to help pubs across Scotland and the wider United Kingdom. It is no secret that, over the past few years, many have been shutting down at an alarming rate. I am sure hon. Members from rural constituencies like mine are particularly aware of this. None the less, all is not doom and gloom. The importance of pubs in our communities is profound. For hundreds of years people have been able to congregate in our pubs with friends, neighbours and family members. No doubt many of this country’s finest ideas and movements have been dreamt up at a night in the pub. This sentiment is truer today than on any other, on the eve of our celebration of Robert Burns. The pubs’ practical role is clear, too. The great “Pub is the Hub” initiative helps publicans expand their offering into being the local newsagent, post office or village shop in communities that have lost those services, increasing the viability and integral value of a community pub.

In Berwickshire, Roxburgh and Selkirk alone, 800 jobs are supported by the pubs and drinks sector, and it is growing. Great pubs such as the Auld Cross Keys Inn in Denholm are regularly mentioned in CAMRA’s “Good Beer Guide”, and good pubs need good beer. In the Borders, those are supplied by the fantastic Born in the Borders and the award-winning Tempest brewery, to name just two. Thriving distillers are creating innovative gins and bringing whisky production back to the Borders for the first time since 1837.

I am very proud to highlight the innovation and achievements taking place in my constituency and across Scotland, but we must also consider the great work that the Government have done to help improve the livelihoods of publicans and the communities they serve. Freezing duty on wines, ciders, beers and spirits is one of the most prominent. That was something I was more than happy to call on the Chancellor to do because I know and understand the benefits that are felt in many rural communities in my area and across the United Kingdom. In addition, the pubs code, while by no means perfect, demonstrates that the Government have the long-term interest of pubs at heart. I look forward to hearing from the Minister how the Government plan to address the concerns that were raised about the pubs code and the adjudicator, and how the Government plan to support the pub sector across the United Kingdom.

--- Later in debate ---

[Drew Hendry]

I intend to cover that point, and will answer it fully in a moment or two.

I congratulate the new Minister for pubs on his remit. If he listens today and is able to make the required changes, I am sure many people will raise a glass to toast his appointment. It is pleasing to be able to agree for a change with the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont). It is a rare occurrence. He mentioned a private Member’s Bill in Scotland—I will return to that—and rightly said that the pub landscape in Scotland is different from that in England and Wales. He mentioned the importance of pubs in the community, and again I agree. In areas where pubs are successful, they make a vibrant offering to the economy. He also mentioned Burns. As he will be aware

“gude ale comes and gude ale goes”—

wise words indeed. The hon. Member for Strangford (Jim Shannon) made an important point about who audits the auditors, which the Minister should address. He also made a point about community.

On the private Member’s Bill, there is cross-party support in Scotland for looking into a statutory code, and to back that up the Scottish Government commissioned a study to look at various pub models. Work on that is ongoing, but it is looking at whether pubs in the tied sector are more unfairly treated than those in other sectors. The conclusion of the initial investigation was that, as I said earlier, it is difficult to compare the market in England and Wales with that in Scotland, because they are so different due to Scotland’s independent free trade model. The Scottish Government are currently looking into whether such legislation is required, and I understand that discussions have been continuing right up to the minute about how to take that forward.

Since the Minister for pubs is here, I wish to underline that pubs need support. In Scotland, the SNP Government are working closely with public bodies and the industry to support jobs, infrastructure and the hospitality sector. Interestingly, the introduction of minimum unit pricing, which targets very cheap alcohol, could help the pub economy in Scotland because it will prevent people from buying cheap drinks in supermarkets, and allow them to spend more time in the controlled environment of a pub. The alcohol minimum pricing is set at 50p a unit. The chief executive officer of the Scottish Licensed Trade Association, Paul Waterson, has said:

“Cheap priced alcohol has turned Scotland into a nation of stay-at-home drinkers. Some 72% of total alcohol sales in Scotland are off-sales; 80% of this total, is sold by supermarkets. When people drink in uncontrolled environments, alcohol-related problems increase significantly.”

The brewing and pub industry in my constituency has had considerable success. Cairngorm brewery is nearby, as is the Black Isle brewery. The oldest bar in Inverness is Gellions, which was formed in 1841, and the Best Bar None awards have just declared through their best bar scheme that 22 venues in Inverness have won awards for outstanding efforts in helping to create a safer environment for the public. Will the Minister look into the small business bonus that has operated successfully in Scotland? Two out of five pubs now pay zero or reduced rates thanks to that bonus, which helps their viability.

[John Lamont]

Does the hon. Gentleman recognise that, because of the reforms to business rates introduced by the Scottish Government, many pubs, including many in my constituency, have seen their business rates go through the roof? The basis on which rates are now calculated means that many businesses are paying much more than they were under the previous regime, yet they are not seeing any additional income and many pubs now face closure.

[Drew Hendry]

The hon. Gentleman is trying to make a point. He will also be aware that the Scottish Government have acted to restrict the increase in rates for the hospitality trade, and put measures in place to ensure that pubs and other small hotels and businesses are not disproportionately affected.

In conclusion, the Minister has an opportunity to make a big difference to the pub industry and I hope he will listen to the points raised by hon. Members about the situation in England and Wales. I also hope that he will consider other measures to support the licensed trade, and ensure that the pubs in our communities are viable.