Beer Taxation and Pubs

Luke Graham Excerpts

Thursday 28th March 2019 Commons Chamber

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to follow the hon. Member for Chesterfield (Toby Perkins). As a nation we need to have a balanced approach to the provision of alcoholic drinks, their sale, their taxation and the licensing of pubs. I will take this opportunity to make a cautionary remark: it is well publicised that there are proven consumption levels that should not be exceeded in order to minimise the risks to our health. The key is to enjoy drink in moderation and, best of all, in the local pub.

Our pubs provide a social meeting place, encouraging people to meet and converse with others in convivial surroundings. The majority of pubs in Scotland are convivial— although some may not be—and an important part of our infrastructure. In the United Kingdom, pubs and drinks producers are also major employers, with approximately 900,000 employees. Many of those businesses—and of course the consumer—will benefit from the rates discount of one third for small retailers in England and Wales from April 2019, and in Scotland we have had the small business bonus for a number of years, which has been of great assistance, but neither scheme goes far enough to assist pubs. Another good thing is the freezing of beer, cider and spirits duty for yet another year—I thank the Chancellor very much for that.

I have previously expressed my support for the freeze on duty, given my constituency includes Grants of Girvan, producing whisky and Hendricks gin, Caledonian Bottlers in Cumnock, and the small Ayr Brewing Company, which produces excellent real ales consumed and enjoyed by many.

Even though we are discussing beer, it would be remiss of me not to mention the Scottish whisky industry, which remains a great British success story. Exports are worth some £4 billion per annum, comprising almost a fifth of the UK’s food and drink exports. Duties on alcoholic drinks are forecast to raise £12.3 billion in 2018-19. Surely the Chancellor has a bit of wiggle room for some kindness towards the pub trade.

[Luke Graham (Ochil and South Perthshire) (Con)]

My hon. Friend makes a good point about the whisky industry which the Government have supported so well by freezing the duty for the last two years. For a constituency such as mine, which has Diageo, Strathearn distillery and others, that provides vital support, domestically and with exports. Does he agree that our pubs supply not only great drinks but fantastic food, like the Kirkstyle Inn in Dunning in my constituency? That food can bring families in and, combined with local music, can make the pub the heart of the community.

[Bill Grant]

I completely agree, and pubs are great outlets for locally grown produce which we can be very proud of in the UK, in particular in Scotland.

As with all good news, there is a negative. One of our local businesses raised concerns with me recently about post duty point dilution and the proposed ban on this. I am aware that it will hit some businesses hard and cost them dearly to maintain their standards, only to fund the Exchequer, where their methods involve this practice. I ask the Minister to consider whether any flexibility can be applied when the legislation is drafted this year.

Sadly, pubs are still closing. In the village of Patna in my constituency, we have gone from four pubs to one over the last 15 years, in Drongan from three to one and in Rankinston, the village of my birth, we have had no pub for many years. We have seen the sad demise of these much loved institutions. Indeed, in the last decade almost a quarter of UK pubs have closed. However, it is not all bad news—in Cumnock, the 1906 Bar in the square has just been refurbished and reopened as an excellent eatery and pub. The Kirkton Inn in Dalrymple—you may know it, Madam Deputy Speaker—has recently been purchased and refurbished. The owners have breathed life back into and it is now an excellent pub and eatery. I wish individuals behind those business ventures every success.

There are many reasons for pub closures, including lifestyle choices, supermarket prices and ease of purchase from convenience stores. Despite the temptation of the aforementioned, I very much enjoy supporting my local pubs, but I cannot be the saviour of every pub—we all need to participate. If we want them, we have to use them, although as always the beer should be consumed in moderation.

The issue of business rates comes up constantly, and I have been approached by bar owners and publicans in my constituency who are concerned by the cost, despite the small business bonus scheme. They face long delays when they appeal their rates, and they find it very hard. CAMRA has long campaigned to reduce the rates for pubs. How often can we repeatedly punish these wee facilities in rural communities and towns and treat them as a cash cow for taxation? We need to take a serious look at the issue.

Communities still value their local pubs and eateries as part of the social fabric of towns and villages. I recognise the work the Government have undertaken recently, but I urge the Minister to continue to recognise the value of pubs, the employment they create and the safe, supervised environment they provide for the consumption of alcohol and engaging with others. We cannot afford to lose many more and it is vital that the value of pubs to the local community is reflected in the taxation applied.