Beer and Pub Taxation Debate

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Department: HM Treasury
Wednesday 5th February 2020

(4 years, 9 months ago)

Westminster Hall
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Mike Wood Portrait Mike Wood
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My right hon. Friend makes an important point. I have a feeling the Minister might just touch on small brewers relief in his response to the debate, because the Treasury has of course conducted a review into it, and we are all looking forward to seeing some of the results of that review—hopefully, we will see them before too long.

John Howell Portrait John Howell (Henley) (Con)
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Will my hon. Friend give way?

Mike Wood Portrait Mike Wood
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If I may, I will give way to the hon. Lady first, and then I will come back to my hon. Friend.

Lisa Cameron Portrait Dr Cameron
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I thank the hon. Gentleman for giving way and for bringing this extremely important debate to the House today. Does he agree that we also need common-sense rateable values? The Glassford Inn in our community is under threat of closure due to the ridiculous rateable value that has been placed on it, meaning that it would actually have to sell a drink to every single person in the village every single night of the week just to meet the rates, never mind make any profit and pay the staff. Does the hon. Gentleman agree that common sense is needed in this agenda and that we must support our rural pubs so that they can continue?

Mike Wood Portrait Mike Wood
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The system of non-domestic rates—business rates—is fundamentally a system of local taxation that was designed in the 19th century, building on the previous poor law. It really does not suit the needs and features of a 21st-century economy, particularly one where so much retail is increasingly moving out of town or on to the internet—as yet, nobody has designed an effective virtual pub that can serve a virtual beer that is quite a satisfying as the real thing. We are in a position where our community pubs are at an unfair disadvantage, as the hon. Lady says, compared with businesses that can reduce their liabilities.