Beer Taxation and Pubs

Debate between Mary Glindon and Mike Wood

Thursday 28th March 2019 Commons Chamber

[Mike Wood]

My hon. Friend is absolutely right. I know that my hon. Friend the Member for Waveney (Peter Aldous) would also agree, with St Peter’s being a major advocate of this argument as well. The European Union, within its beer duty framework, is in the process of changing those thresholds. I would hope that the Treasury, regardless of what form of Brexit we end up with, will make sure that, at the very least, we follow the mechanisms that are already in place, amending the threshold for low-alcohol beers to one where it is rather more viable for brewers to produce at that strength. Encouraging people to go down from over 4% to around 3% is better for their health, and if we can make sure that it is fiscally better for the brewer as well, then so much the better.

As CAMRA has made clear, one of the opportunities as we leave the European Union—we know from last night’s discussion that there is an element of disagreement as to what should happen next—is that we are able to take back control of our excise duty regime. This gives the Chancellor an opportunity to look afresh at how we tax beer in pubs, in particular—how we can use fiscal measures to help pubs to thrive, to support responsible drinking, and to redress the competitive disadvantage that our community pubs have as against, in particular, supermarkets that are able to stack drinks high, sell them below cost, and use them a loss-leader.

[Mary Glindon (North Tyneside) (Lab)]

Does the hon. Gentleman agree with Colin Shevills of Balance North East, who commissioned an independent survey of publicans, that it is cheap alcohol—cheap booze—in the supermarkets that is most dangerous to our pubs and causing more closures than alcohol duty?

[Mike Wood]

There is a range of factors. Beer duty is certainly part of it, but business rates are a massive factor in the pressures affecting our pubs. For these pubs to flourish, to remain the beating heart of our communities, and to continue to compete as businesses, they need the investment that comes, and is only possible, if the tax burden is kept at a sensible level.