Pubs Code: Guest Beers
Mike Wood Excerpts(1 month, 1 week ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
May I start by extending my own congratulations? I also congratulate my hon. Friend the Member for Carlisle (Ms Minns) on securing this debate and on a very engaging and well-informed speech. It took us through an interesting period in her constituency’s history. I was unaware of the nationalisation of pubs in Carlisle. If that is a suggestion that she wishes to put forward for our next manifesto, she will be aware of the policy-making processes and how to do that. Unfortunately, at this stage I cannot confirm that we have any plans to nationalise pubs—that probably will not come as a surprise to anyone.
Before I go on to address my hon. Friend’s points, I will say a little more about the industry more generally, because it plays a critical role in supporting local communities in every corner of the UK. The interest that we have had in this debate shows how important pubs are. They are not just any other local business; they are a part of our history, culture and heritage, and they are a huge employer. The wider hospitality sector employs around 2.2 million people.
Mike Wood (Kingswinford and South Staffordshire) (Con)
The Minister is making a very important point, because whether it is the Carlisle Brewing Company in the hon. Lady’s constituency or Kinver Brewery in mine, our family breweries play an important role in providing that diversity of product and high-quality beer that is particular to our local communities. Does the Minister recognise the devastating impact of the Chancellor’s changes to business property relief in the Budget on the future of so many family breweries across the country?
Justin Madders
I will go on to some of the very positive things that were announced in the Budget to help breweries and small businesses in particular.
There are about 154,000 businesses in the hospitality sector, generating revenues of around £52 billion per annum. They create vibrancy in communities, support wider social objectives, provide accessible jobs, support community cohesion, and provide welcoming spaces for those who feel isolated and want to enjoy the company of others.
It is an important fact that over 80% of the beer consumed in the UK is brewed here—not in the Palace of Westminster, but in the UK—while UK brewers also export over 1 billion pints of beer annually to over 100 countries, according to the British Beer and Pub Association.
Uyghur and Turkic Muslims: Forced Labour in China
Mike Wood Excerpts(1 month, 2 weeks ago)
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Mike Wood (Kingswinford and South Staffordshire) (Con)
I suspect that this will be the final time that I speak on behalf of His Majesty’s official Opposition in an international trade debate. Following the events across the water overnight, there might be an alternative vacancy in Government that means the Minister may move on before too long. If this is the last time we face each other, let me thank him for the courtesy that he has shown during my brief time shadowing him. It has been greatly appreciated.
I join other Members in congratulating the hon. Member for East Renfrewshire (Blair McDougall) on securing this important debate on an urgent and deeply troubling issue. It affects not only our values and moral standing as a nation, but the integrity of our supply chains.
The evidence of the systematic forced labour of Uyghur and Turkic populations in China’s Xinjiang region is clear and undeniable. Reports indicate that over 1 million Uyghurs and other Muslim minorities are detained in camps, facing conditions that are nothing short of abhorrent and genuinely disgraceful. They are subjected to forced labour under the watchful eye of a regime that seeks to erase their identity and culture. The situation is not just a distant tragedy; it is intertwined with our own economy and lifestyles, affecting the products that we import, buy and consume in the United Kingdom.
We have long recognised the importance of aligning our trade policies with our commitment to human rights. Our strategy for UK-China relations has been built on three pillars: protect, align and engage. That approach has driven us to strengthen our national security protections, deepen collaboration with our allies and engage with China where our interests converge.
The previous Government introduced measures to ensure that British organisations, both public and private, are not complicit in and do not profit from the human rights violations in Xinjiang. Those measures include the review of export controls as they apply to Xinjiang, to ensure that the Government do all they can to prevent the export of goods that may contribute to human rights abuses in the region; the introduction of financial penalties for organisations in the UK that fail to meet their statutory obligations to publish annual modern slavery statements under the Modern Slavery Act; new robust and detailed guidance to UK businesses, setting out the specific risks faced by British companies with links to Xinjiang and underlining the challenges of effective due diligence there; and a Minister-led campaign of business engagement to reinforce the need for UK businesses to take action to address the risk.
We have led the international community in condemning China’s gross human rights violations. In March 2021, we imposed sanctions on key officials involved in those abuses, acting alongside 29 other countries. Furthermore, we were the first nation to lead a joint statement at the UN condemning those violations, back in 2019. This year we did so again, now with a record-breaking 51 signatories. These actions demonstrate our unwavering commitment to holding China accountable, which I know is being continued by the new Government.
In 2023, our updated public procurement rules were designed to mitigate modern slavery risks, ensuring that no taxpayer money inadvertently supports these violations. We also introduced strict measures under the Procurement Act 2023 to exclude suppliers involved in labour market misconduct, further reinforcing our commitment to ethical sourcing. However, it is essential to recognise that although we have made significant strides in previous years, huge challenges remain, particularly in how businesses engage with entities that may be complicit in these gross abuses.
Sadly, the situation with fast fashion companies such as SHEIN raises enormous concerns. SHEIN has been widely criticised for its alleged links to forced labour in Xinjiang, yet we see troubling ties emerge between the current Government and companies such as SHEIN. It is deeply concerning that the chief executive of SHEIN has recently been engaging with senior figures within the Labour party. That raises uncomfortable questions about access and influence within Government when we should all be standing firm against human rights abuses. Although we have taken decisive action, we cannot allow our progress to be undermined by those who seek to profit from exploitation.
As has been said, the European Union has taken a proactive stance against companies such as SHEIN. However, the disparity between the EU’s action and our own lack of action highlights a critical point: we must be unequivocal in our commitment to human rights and free from the taint of associations that contradict our values.
The implications of forced labour in our supply chains extend beyond ethical concerns; they pose serious reputational risks for the businesses themselves and threaten our trade relations around the world. We have a responsibility not only to protect the rights of the Uyghur and Turkic populations but to safeguard the integrity of UK businesses. Companies that choose to engage with suppliers linked to forced labour rightly risk facing a backlash from consumers who demand accountability and transparency. It is our role to make that accountability and transparency easier.
I have five questions that I hope the Minister will address in his response. First, before the election Labour promised to declare formally what is taking place in Xinjiang as a genocide. Is that still the Government’s intention? If so, did the Foreign Secretary raise that intention with Wang Yi during his recent visit to Beijing? Secondly, when do the Government plan to launch the international legal action against China on Xinjiang to get what is happening there formally declared on an international level as a genocide, as they also promised before the election? Thirdly, how does the Energy Secretary’s decision to sign off on three enormous solar farms, some of which involve companies judged to be the most complicit in human rights abuses, sit with the Government’s commitment to remove the products of forced labour from UK supply chains? Fourthly, will the Government introduce measures to ensure that the UK does not become a dumping ground for solar panels made by slave labour, as both the United States and the European Union have already done for their markets? Finally, has the Minister met with Uyghurs and Turkic Muslims and their representatives, as his Department develops its China audit?
As we move forward, all UK businesses must conduct thorough due diligence to ensure that their supply chains are free from forced labour. It is imperative that we renounce any friendly or commercial ties with entities engaged in or linked to forced labour. We must remain steadfast in our commitment to human rights, standing alongside those being persecuted in Xinjiang and ensuring that we do not profit at their expense.
Pub and Hospitality Sector
Mike Wood Excerpts(2 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mike Wood (Kingswinford and South Staffordshire) (Con)
Thank you, Ms Vaz, for calling me to speak. It is a pleasure to respond to this important debate on behalf of His Majesty’s Official Opposition, and I congratulate my hon. Friend the Member for Mid Leicestershire (Mr Bedford) on securing it at such a crucial time for the industry.
Pubs and hospitality are a force for good. They are good for the economy, contributing more than £120 billion nationally and delivering £54 billion in tax receipts to the Treasury, which I am sure the Chancellor will be grateful for next week. They are good for jobs, employing 3.5 million people across every age band, from teenagers to pensioners, and with an even gender balance. They are also good for our communities; our pubs, cafés and restaurants are the heart of local life, bringing people together. Indeed, for many villages the pub or café is the last service surviving in the village, offering a community hub that covers everything from jobs clubs and parents and toddler groups through to serving as the village shop, and even—as I saw at one Pub is The Hub initiative in Cornwall—the hairdressers.
Pubs are a force for good socially, helping to tackle the scourge of loneliness and isolation. Few people could have failed to be moved by the advert for Charlie’s Bar last Christmas. It shows an elderly man walking from his house to his wife’s grave, raising his cap to passers-by, only to be blanked, but he finds comfort and companionship in his local in Fermanagh.
Less well celebrated are the hundreds of initiatives up and down the country, such as the Go To Place at Love & Liquor in Codsall in my constituency, which brings 60 or more people together each Wednesday morning for a coffee, a chat and a bit of breakfast. Although we are all too familiar with the dangers of excess drinking, well-regulated and well-run pubs and bars are forces for good for our mental health. The work done by Professor Dunbar at Oxford university shows that people who have a local where they drink regularly in moderation are likely to be happier and more content than those who do not. Their physical and mental health is likely to be better than that of people who do not. They are likely to have more friends on whom they can depend and feel more engaged in their community than people who do not.
Pubs and hospitality venues have, of course, faced a range of pressures over the past few decades, some of which have been referred to. Some are the results of changing consumer demands, preferences and social habits, but others have been exacerbated by policy decisions made here in Westminster and Whitehall, such as the smoking ban, high business rate bills, and alcohol duty rates that are significantly higher than most western European countries.
The previous Government took a range of actions to help to alleviate some of those pressures. They abandoned Labour’s hated duty escalator, which had meant above-inflation rises in duty every single year. They cut beer duty for the first time in half a century, and introduced multiple freezes in duty, which means that beer duty on a pint in a pub is now significantly lower in real terms than it was in 2010. They introduced a reduced rate of duty for draught beer and cider, taking advantage of the freedoms after Brexit. They helped to reduce the huge disparity in the costs that pubs and bars face, compared with supermarkets and off-licences.
The link between duty rates and alcohol consumption is tenuous, but we know that higher taxes on alcohol lead people to switch their drinking from well-regulated licensed premises to drinking at home, and from drinking lower strength beers and ciders to higher alcohol by volume wines and spirits.
Crucially, hospitality and retail business rate relief has meant that small and independent hospitality venues have received 75% off their business rates. That has made the difference for many between being able to continue and being forced to shut their doors for good.
The new Government made a lot of promises before the election, some of which they now seem to be trying to row back from, but pubs and hospitality need them to deliver now, starting with next week’s Budget. The Chancellor needs to start with a cut to alcohol duty. A return to the previous Labour Government’s approach of continuous duty rises would be devastating for many pubs and breweries. That could be done by widening the draught beer duty differential, cutting the cost of draught beers and ciders in pubs, bars and restaurants, and targeting support where it is desperately needed. Above all, the Chancellor needs to finally publish her replacement for business rates with a new system that is fair for the hospitality sector, which pays a disproportionate share of business rate receipts—
Jamie Stone
The hon. Gentleman mentions business rates. As the hon. Member for Dumfries and Galloway (John Cooper) said, pubs are closing twice as fast in parts of Scotland than they are on this side of the border. Sir Tim Martin, the boss of Wetherspoons, has in recent days strongly criticised the Scottish Government for their deeply unhelpful attitude to rating. Does the hon. Gentleman agree that the finger should be pointed north of the border too, and that something should be done before more pubs close?
Mike Wood
I certainly agree that, although in England the hospitality sector has long had a number of challenges, the picture north of the border is even worse because of decisions made by the Scottish Government.
It is essential that the Chancellor publishes the replacement for business rates. She announced three years ago that she would scrap them, but the sector is still no clearer about what she will bring in instead. It needs clarity next week. If for some reason, even after three years, the Chancellor still cannot say with what she is replacing business rates, she must commit to extending the 75% relief, and not just until next March or the March after but right up until a new system is in place.
Hospitality businesses are particularly impacted by high energy costs. The Government need to make good on the promises to help that they made before the election. The Prime Minister promised to take £53 billion off business energy bills by 2030. I ask the Minister a simple question: how much can hospitality businesses expect their energy bills to fall by next year?
Pubs and hospitality also need the Government to recognise the impact of regulation, no matter how well intentioned, on small hospitality businesses in particular. It was disappointing that neither the Deputy Prime Minister nor the Business Secretary seemed to acknowledge the warnings in their own impact assessment about the harms that could be caused to small businesses in sectors like hospitality by their employment legislation. Those fears are only made worse by reports the Government are considering further regulation, banning smoking in outdoor beer gardens and outside nightclubs. That change would have minimal, if any, health benefits while causing huge damage to venues. It could even have the perverse effect of shifting people from drinking outside in beer gardens to drinking and smoking more inside their homes.
Finally, as has been said, for the many pubs and hospitality venues that are just about getting by, the reported rise in employer’s national insurance contributions could tip many over the edge, making the difference between continuing and closing. If the Chancellor insists on going ahead with this highly damaging jobs tax, then it is even more important that the Government do more to support pubs and hospitality.
I again congratulate my hon. Friend the Member for Mid Leicestershire for bringing this debate, because pubs and hospitality are a force for good. They need and deserve our support.
Gareth Thomas
Lastly, Ms Vaz, Ofgem has announced a series of measures to protect non-domestic energy customers from poor behaviour by energy suppliers, which I hope will address some of the concerns that we heard on that issue.
Valerie Vaz (in the Chair)
Yes, thank you. I call Peter Bedford to wind up.
Oral Answers to Questions
Mike Wood Excerpts(3 months, 2 weeks ago)
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Mike Wood (Kingswinford and South Staffordshire) (Con)
I welcome the Minister back to the House and back to the Government Front Bench. On the final sitting day before recess, the Secretary of State slipped out an announcement that he expected trade talks to begin with a number of countries this autumn, and the Minister has just confirmed the intention to open talks with the European Union. When can we expect the Government to publish their negotiating objectives for scrutiny by the House ahead of those talks, as demanded by the Select Committee and committed to by the previous Government?
Mr Alexander
I am grateful to the hon. Gentleman for his kind words of welcome both to this House and to the Dispatch Box. I hope that we will be able to exchange in exactly this kind of constructive dialogue in the months and years ahead. Clearly, we inherited a number of open negotiating mandates from the previous Government—not least in relation to the Gulf Co-operation Council and to India—and we are carefully reviewing those mandates, but we have already been clear that, as well as resetting the relationship with the European Union, we are keen to pursue essentially a twin-track strategy, whereby we take forward the work in relation to those free trade agreements.