Small Breweries Relief

Debate between Kemi Badenoch and Andrew Jones

Monday 9th November 2020 Commons Chamber

[Kemi Badenoch]

I am afraid that the hon. Gentleman is still incorrect. I will come to the percentage of brewers that are actually affected in a moment, but nothing could be further from the truth than to say this is being done to help large brewers. It is not.

Thirdly, there is the criticism that the change will lead to the collapse of the small brewing sector. Simple arithmetic shows that critique does not stack up. In 2019, about 80% of brewers produced less than 2,100 hectolitres, so 80% of brewers are not affected. Meanwhile, less than 8% of brewers produce between 2,100 and 5,000 hecto- litres—the 1,000 pints a day point going forward. Modest tax changes affecting a narrow slice of brewers will not spell the end of craft beer.

Hon. Members have made the point about taxing small brewers in the middle of a pandemic. We realise that, but this long-standing issue in the industry well predates covid-19. As I said, the first review was announced in 2018, and brewers were engaged on the topic well before that. The debate has to be settled. We have been clear that reforms will not come into effect until 2022 at the earliest, to give brewers time to adapt.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

I recognise the strength of emotions that we see across the House and are all showing. The Minister is right to say that this policy has been a source of disagreement within the industry, and it has been going on for years. I had a bit of a role in it, having started some of the work that led to the review. I tried to get the industry to come together to find a solution, but that was not possible. We surely need to create a structure that allows smaller and new businesses to be created while also incentivising growth.

One of the most depressing conversations I had in my research on the subject was when talking to a brewer who said he had stopped exporting because, if he continued to do so, that would have taken him over the cliff edge. That is bad for business and bad for UK plc. There is a problem to solve, and the Minister is doing the right thing in trying to bring it to a conclusion and to incentivise growth in this sector, which we all clearly love very much.

[Kemi Badenoch]

I thank my hon. Friend for those excellent points. Having done this job himself, he knows the issues at stake.

I will continue to address points raised by hon. Members. I said that 80% of the total brewing population is not affected, because those producing 2,100 hectolitres—1,000 pints a day—will not face any tax changes at all. It was also proposed that we should smooth the taper above 5,000 hectolitres. That would give the large brewers a big advantage at a significant cost to the Exchequer. We do not think we should give small breweries relief to brewers producing tens of millions of pints.

Delay Repay: Great Eastern Main Line

Debate between Kemi Badenoch and Andrew Jones

Wednesday 30th January 2019 Commons Chamber

[Andrew Jones]

There is no doubt whatsoever that we do sometimes test the patience of constituents who are enduring delays and constant bus replacement services beyond a pleasant and comfortable level, and the constituents of Rayleigh are well represented by my right hon. Friend.

[Mrs Kemi Badenoch (Saffron Walden) (Con)]

Will the Minister give way?

[Andrew Jones]

I am more than happy to give way; I do not think we are under quite the time pressure that my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) thinks we are.

[Mrs Badenoch]

I thank the Minister for giving way; he is being exceedingly generous. It would not be right for me to hear about an Adjournment debate on Greater Anglia without talking about the issues in my constituency. While I am not on the great eastern main line, I am on the west, and I cannot help but pick the Minister up on his point about how well it is doing. I want to add my voice to echo my colleagues’ concerns. I get lots of letters from constituents who are dissatisfied. Is there something the Minister can do to look again at these statistics that show how well Greater Anglia is doing, because I think many of us would dispute them?

[Andrew Jones]

I am coming on to the performance of the company, so I will address that point, if I may, in a few moments.

First, let me pick up where we left off on communication, a key point raised by my hon. Friends the Members for Chelmsford (Vicky Ford) and for Braintree. I entirely agree that it is appropriate for the train operating companies to work extra hard to keep passengers informed when things go wrong, or when new services become available. I am not sure that this is a strength of our rail industry as a whole, but I have certainly raised it with the industry. I have talked to most of the TOCs over the past few weeks and have highlighted one thing above all, which is that I want to see a focus on operational excellence to deliver the most punctual network we can. I want them to focus their attention on customers and their communication with customers.