Beer Taxation and Pubs

Marcus Jones Excerpts

Thursday 28th March 2019 Commons Chamber

[Mike Wood]

I share the sadness whenever a well-used pub closes for any reason, and there is a particular impact on the community when that pub is a heritage building in a town, city or village.

Last autumn, 116,000 people up and down the country signed the Long Live the Local campaign—many of them emailing their MPs. It was launched by Britain’s Beer Alliance, and quickly garnered public support from licensees, beer drinkers and many more groups. I know that the success of that petition due to everybody who united behind the campaign was pivotal in persuading the Treasury of the need for action to support beer and pubs. I am delighted that the Chancellor listened to those passionate calls and froze beer duty once again.

The beer and pub sector is vital to our country. Nearly 900,000 people up and down the United Kingdom rely on the industry for work; 43% are younger people aged 16 to 24, and more than half are women. Supporting the pub trade is a fantastic way to reduce youth unemployment and develop skills among young people. This House saw at first hand the impact of apprenticeships across the hospitality sector and the opportunities available, during the apprenticeship showcase in National Apprenticeship Week.

[Mr Marcus Jones (Nuneaton) (Con)]

My hon. Friend is making an extremely good point about the opportunities for people in the industry. Does he agree that this is one of those industries where someone can quite literally start behind the bar and end up as the chief executive or the chairman of quite a big company?

[Mike Wood]

My hon. Friend is spot on. When I was helping to judge the parliamentary pub chef and young pub chef of the year competition this time last year, we spoke to a number of people who were not yet in their mid-20s and were not only running their own kitchen but, in a number of cases, were now running multimillion-pound turnover businesses in their own right. There are very few other sectors where people can go into an industry at a young age with next to no start-up capital and have such opportunities for rapid career progression resulting in running their own business.

Brewing is also a true success for home-grown British manufacturing. A staggering 82% of all beer consumed in this country is made in this country, and we have over 1,800 breweries in the UK, 149 in the west midlands alone. In my own constituency, the sector accounts for 1,068 jobs, 315 of them held by people under 25. It contributes over £34 million in gross value added to the Treasury’s coffers, for which I am sure my hon. Friend the Minister is very grateful. Nationally, the sector adds nearly £23 billion to the UK economy and contributes almost £13 billion in taxation to the Treasury. Some of us would argue that that is a little disproportionate. One in three pounds spent in pubs goes straight into Treasury coffers, with an average of £140,000 for every pub in the country being raised for the taxman every year. I therefore strongly welcome the Chancellor’s announcement of a review of small brewer’s relief.