Budget Resolutions

Mike Wood Excerpts

Wednesday 27th October 2021 Commons Chamber

[Mike Wood (Dudley South) (Con)]

As chair of the all-party parliamentary group on beer and brewing, I welcome the measures that the Chancellor announced to support sectors that have been particularly hard hit throughout the pandemic and by many of the measures that were necessary to fight coronavirus. In the previous financial year, around £17 billion in lost trade was wiped off the value of the pub and beer sector. Trade in the wider hospitality sector was down 64% year on year; beer sales through pubs fell by 70%; and at least 1,000 pubs that closed during the restrictions have still not opened their doors since the end of those restrictions.

Beer and pubs are worth fighting for and are intrinsically linked. Pubs and brewing support around 930,000 jobs throughout the United Kingdom, roughly equally split between men and women, and around half the people employed in the sectors are aged under 25. Pubs and brewing support more than 1,000 jobs in my constituency of Dudley South. They contribute around £26 billion to the UK economy and, as the Chancellor will be aware, around £15 billion to the Exchequer in tax revenues.

If pubs are a force for good economically, they are also a force for good socially and culturally. As Professor Robin Dunbar of the University of Oxford wrote in his report “Friends on Tap”, people who have a local that they use regularly are more likely to have more friends and to be more

“satisfied with their lives and feel more embedded in their local communities”.

They are likely to be healthier and happier.

Isolation is one of the big social challenges that face so many of our communities. Pubs really were the original social network. They are at the heart of our communities. So often, when a pub in a town or village closes, it is the last facility to go. As pubs have closed throughout the pandemic, it is not just one service that has gone with them. As we have seen through so much of the work by the wonderful charity Pub is The Hub, there are, in effect, community centres operating out of pubs. There are parent and child groups, jobs clubs and almost every facility and service. The APPG even visited one pub with a barber and hairdresser operating out of the bar. I only hope that the people cutting the hair had less to drink than some of those who might have been on the receiving end of the haircut. Pubs also raise more than £100 million a year for charities and they support grassroots community sport to the value of £40 million annually, working in every one of our constituencies.

Over the past two years, pubs have never been in greater need of support, so pubs, brewers and beer drinkers were looking to the Chancellor today to see whether he would step up to that challenge. I was pleased to hear that he did with a package of measures that went beyond what I think the industry had even dared to hope for. A key measure will be around business rates. The 50% support on business rates will make a massive difference to the viability of many pubs and to the jobs and livelihoods that depend on them.

One of my first questions in this place after I was elected six and a half years ago was to ask the now Health Secretary about business rate reform. As has been alluded to during this debate, it has been promised a few times. For this finally to go ahead, we need to make sure that it recognises the realities of a 21st century economy where the value of property is not necessarily the driving force of economic activity, as it might have been 50 or 60 years ago.

Pubs pay around 2.5% of business rate revenues and that is despite having only about 0.5% of the rateable values. They are paying far more than the proportionate amount and that needs to be addressed during the reforms that were mentioned earlier.

As a sector, beer and pubs were absolutely clear that the one thing they could not afford as they started to rebuild after the pandemic was an increase in alcohol duties.

[Adam Afriyie (Windsor) (Con)]

I commend my hon. Friend for his speech. He is making a wonderfully nuanced exposition of the benefits of pubs and local hospitality businesses to an area, both in terms of charities and of contributing socially to a community. The Windsor constituency is dependent on hospitality and the whole constituency breathed a sigh of relief with the measures in the Budget, because it is clear they hit home when it comes to supporting those hospitality businesses and pubs, which are at the heart of our local communities. Like him, I very much commend the Chancellor’s words today and, in particular, those measures that support those smaller businesses.

[Mike Wood]

My hon. Friend is absolutely spot on. The wider hospitality sector employs around 3 million people across the country. It is a bigger employer than automotives and aerospace combined. It is one of our biggest economic sectors. An increase in alcohol duties today, even a CPI or RPI increase, would have killed off so many of those small businesses: businesses that have struggled through two years of on-off restrictions, that have just about kept their heads above water, and that have exhausted all of their savings and reserves—their borrowing facilities—but have just about managed to keep going with rebuilding their businesses. It is excellent business and job-saving news that the Chancellor has listened to them and announced that, yet again, there will be no increase in beer duty, which will mean that beer duty has not increased at all since before the 2017 general election.

The broader reforms that the Chancellor has announced for a new, simpler and fairer system of alcohol duties, and that my hon. Friend the Minister has published in the consultation alongside the Budget this afternoon, also make sense. They take away so many of the distortions that the current multiple rates represent: the disincentives to expand; and the incentives to produce stronger alcoholic drinks rather than ones that may be lower in alcoholic volume. These are all counterproductive and go against our policy in other areas.

The changes resolve many of the anomalies in a system that has grown in an ad hoc fashion over many years—for example, on cider duties. Why should far more duty be paid on a flavoured cider just because the fruit is added after the fermentation process, so that it suddenly finds itself being taxed as a wine, instead of a cider? The hon. Member for Edinburgh West (Christine Jardine) seemed to think that the changes being introduced to duty on sparkling wines were either unnecessary or illogical, but what is logical about a system of wine duties under which more duty is paid on a £6 bottle of prosecco than a £30 bottle of claret? That makes no sense economically or on any level. Resolving those anomalies in the duty system is only possible now that we have the control to restructure duty systems outside of the previous EU excise duties regulations.

Most significant of all was the announcement by the Chancellor of the new reduced rate for draft beer and cider. The Exchequer Secretary to the Treasury, the hon. Member for Faversham and Mid Kent (Helen Whately), is smiling; she may be aware that I have been arguing this case for some time. I think the issue was in the speech that I made four and a half years ago when I first became chair of the all-party parliamentary group. Of course, at that point we did not have the legal powers to address it.

Before the pandemic, it made sense to support our pubs, bars, restaurants and hospitality venues by charging a lower rate of duty on draught beer—the beers that can only really be served and sold through a hospitality venue—than on the bottles and cans that tend to be sold at very low prices in our supermarkets. Since the pandemic, that has gone from being a sensible measure to a bit of a no-brainer. It will help the parts of the sector that have been hit hardest during the pandemic and need the most support.

Beer and pubs have had a terrible two years. For many, the conditions will remain extremely difficult for some time to come, but the measures that the Chancellor has announced today provide a lifeline and a source of confidence to rebuild, reinvest and support those jobs to play their part in creating the prosperity on which our constituents rely.

Health and Social Care Levy

Mike Wood Excerpts

1st reading
Wednesday 8th September 2021 Commons Chamber

[Mike Wood (Dudley South) (Con)]

My hon. Friend the Member for Bolsover (Mark Fletcher) rightly said that to govern is to choose. One of the reasons for the result of the last general election was that voters knew that this Government were more likely to make the difficult choices that were needed. The choices we have to make are not always between the good and the perfect. Many of them involve choosing the less bad option. As a Conservative, I believe that raising taxes is certainly a bad option. It clearly breaches a manifesto pledge, and it is both economically and morally wrong. It is economically wrong because higher taxes will dampen growth and prosperity in the longer term, and it is morally wrong because it means taking money away from those who have worked hard, to be spent elsewhere. That needs to be kept to a minimum.

However, if raising taxation is a bad option, surely the alternative—not acting—is far, far worse. Not acting would mean allowing the backlogs that have built up in the NHS through the pandemic to continue. That would put people’s early diagnoses at risk and delay treatments further, clearly endangering lives. It would mean not reforming social care, despite there being almost universal agreement that that reform is long overdue. Government after Government have promised to take this on, to reform social care and to put it on a sustainable footing financially. There have been endless reviews, but each time they have ended up in the “too difficult” box.

How many of us can go for a week without getting an email from a constituent about social care, whether it is about the quality of social care, access to social care, top-up fees, their ability to pay or the fear that they will have to sell everything they have worked hard and saved for all their life? That is why something needs to be done. If we agree that action is needed and that we need more money to be spent on the NHS to clear the backlog and reform social care, the only decision we have to take is how we pay for it.

In the long term, borrowing to pay for this is not a sensible option. There are very few taxes that can raise anything like enough money to meet the challenges we face. Of course this could be put on VAT, but that is clearly a much more regressive option that would place a disproportionate burden on the least well off. There have been various fanciful ideas from some Opposition Back Benchers that basically suggested that someone else should pay for it, or that there was a hidden pot of money that could be raided. It is not there! The fairest way is to have a levy on national insurance contributions, sharing the cost between employees, employers, the self-employed and those who get income from dividends, so that those who earn more pay more.

I think the shadow Chancellor suggested that this could be funded by charges on the sale of land, property and shares, but the truth is that combined revenues from all stamp duties on land, property and shares comes to about £15 billion, which is nothing like enough to pay for what is needed. So national insurance is the fairest option. Gordon Brown was right, on this one occasion, that it is the most regressive option—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

National Insurance Contributions Bill

Mike Wood Excerpts

3rd reading
Monday 6th September 2021 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

I rise to speak to my new clause 4, which would quadruple the employment allowance from £4,000 to £16,000 for two years. I tabled it for several reasons. The Government’s Bill rightly identifies that changes to national insurance contributions for both employees and employers have a role to play in stimulating economic activity. That is why they wish to have special NI provisions for freeports and, elsewhere in the Bill, for veterans, to help them back into work and stimulate economic activity in freeports. Interestingly, the Government are indicating in this Bill that they see a role that national insurance contributions can play in stimulating economic activity. I will not labour the point, because Madam Deputy Speaker has made the rules clear on that, but we expect to see further announcements later in the week on NICs, which I think will contradict what this Bill is seeking to do.

NICs have an important role to play in stimulating economic activity, and I wish to speak particularly about our small and medium-sized enterprises. So many of them have been hit badly by the pandemic, especially those in our retail, hospitality and tourism sectors. One thing that many of us here can agree on is that as we come out of the pandemic we expect to see some big changes to the way business operates. We expect possibly to see more online working and more working from home, and we may well see new businesses come in to replace old businesses that did not survive the pandemic to deliver the new services that will support new ways of working and perhaps new ways of living. People will live further away from town centres. What new opportunities will there be in suburban constituencies such as mine, and even rural constituencies, to deliver services for people who would not previously have spent as much time there? So this is an interesting time, but I believe the Government should, above all, be prioritising economic growth and most particularly employment at this stage.

[Mike Wood (Dudley South) (Con)]

What assessment has the hon. Lady made of the cost to the Exchequer of her new clause?

[Sarah Olney]

I have not made an assessment of the cost, but that is partly because it would be difficult to manage that against the extent to which my proposal could, as I said just a minute ago, stimulate the economy, which is what we should prioritise at this time, particularly for small and medium-sized enterprises. If we can, we should stimulate SME growth, particularly in new sectors that may well benefit from changes in the way we do business in this country. The hon. Member for Gordon (Richard Thomson) commented in particular on businesses that pursue carbon-free ways to deliver goods and services, which are such a priority. These are big areas for growth and we should be pursuing them.

In particular, we should support employment in new industries. In the past few weeks we have seen a great deal about skills shortages. We really need to improve skills development in existing industries—we have seen massive skills shortages in respect of drivers of heavy goods vehicle and care workers—but there are also lots of opportunities in the new industries and particularly in the green economy. We really need to support employment and encourage people to develop the skills they need to take their place in what I think will be the new, future economy.

[Mike Wood]

rose—

[Sarah Olney]

I would like to make some progress, if that is okay.

We should at this time pursue economic growth and job creation above all other concerns, because we face an uncertain few months in our economy. We could face a wave of closures and redundancies as the various support schemes that the Government introduced to get us through the pandemic come to an end. There could well be lots of redundancies as the furlough scheme closes. Business rates exemptions and deferred VAT payments are coming to an end, so if we can reduce the pressure on businesses by relieving them of some of their national insurance payments, that will help them to ride out the coming period when they will need to repay some of the costs. VAT on hospitality is going back to 12.5% from the end of this month. All such financial pressures are coming at a time when we think prices will rise and the universal credit cut may well hit household incomes and supress demand.

I propose new clause 4 because instead of a selected NICs cut for companies in freeports, I would prefer that we target the cut at SMEs, at this urgent time when we want to stimulate economic growth and support employment.

--- Later in debate ---

[James Murray]

Thank you, Madam Deputy Speaker. I shall briefly address the amendments we have been discussing as they relate to veterans’ employers’ national insurance relief. As we made clear on Second Reading and in Committee, this is a vital issue. Veterans deserve the Government’s full support as they seek civilian employment after their service to our country. The Minister may remember that on Second Reading and in Committee I asked him and his colleagues to explain why the employers’ relief for veterans is for 12 months—much less than the three years of relief for employers in freeports that the Bill also introduces.

[Mike Wood]

I wonder whether the shadow Minister could help me: which amendment is he currently speaking to that addresses employers’ relief for veterans?

[James Murray]

If the House would rather I did not address the issue of veterans’ employers’ relief, I am happy to move on, but it is an important one to address. I would welcome your guidance, Mr Deputy Speaker.

Better Jobs and a Fair Deal at Work

Mike Wood Excerpts

Wednesday 12th May 2021 Commons Chamber

[Mike Wood (Dudley South) (Con)]

They say that success has 100 fathers, and as we have seen over the last week, in any election 100 reasons are put forward as to why one side won and another lost. But I think it is beyond question that one of the reasons why yesterday’s Queen’s Speech set out the legislative programme for a Conservative Government is that one of our pivotal arguments was about how we can level up the United Kingdom. That was one of the key arguments at the last election, and it is a key reason why last week Conservatives were successful in local authorities such as Dudley and Conservative Mayors such as Andy Street in the West Midlands were successful.

It is about the need to level up, to ensure that every part of the United Kingdom enjoys our success and prosperity and that no area gets left behind, including my constituency of Dudley South. In 1997, Dudley’s gross value added per head was around 78% of the national average. By 2010, that had fallen to just 64%. My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) alluded to the disparity between East and West Germany as a comparator. I do not have a similar analogy, but clearly a 36% gap with the national average cannot be allowed to continue.

Action has been taken over the last 11 years to start to address that gap, to the extent that before the pandemic, in the five years leading up to 2019, salaries in Dudley had increased more quickly than anywhere else in the country. We have seen investment in areas such as Dudley South, including in the west midlands metro tram extension, which will link my constituency in Brierley Hill and Netherton through Dudley to Birmingham’s national rail network; in our enterprise zones, to create jobs; and in the future high streets fund, to get our town centres back on their feet. But there is still a wide gap, and many of the measures announced by Her Majesty yesterday will see concrete action to start to close that gap further and ensure that people have opportunities to succeed, regardless of where they live or who their parents are.

For example, the skills and post-16 education Bill is particularly important for my constituents in Dudley South. For years, if not decades, we have talked about closing the gap in the level of skills and qualifications in the Black Country compared with elsewhere in the country. The Bill will help to address that gap and ensure that my constituents have the skills that firms need for the jobs they have and, at least as importantly, the skills that will be needed for the jobs that we want to attract and create. I went to state schools in Dudley, but few of the people I was at school with in the 1980s and 1990s still live in the area, because so many have had to move away for work. We cannot allow that to happen infinitely.

The House will be aware that I chair the all-party parliamentary beer group. Hospitality is one of the largest employers in the country, particularly among under-25s, so the support given has been necessary. I hope the Treasury will look at differential duty rates and reforming the duty system to support draught beer, which will support thousands of beers—sorry, thousands of jobs—in every part of the country according to the economic model, and perhaps thousands of beers, too.

Leaving the EU: Impact on the UK

Mike Wood Excerpts

Wednesday 17th March 2021 Commons Chamber

[Mike Wood (Dudley South) (Con) [V]]

Five years ago, 70% of Dudley South voters chose to leave the EU. In 2017 and 2019, when Opposition party candidates asked them to reverse that decision, they reaffirmed their choice with large majorities.

For years, Brexit deniers said that the Prime Minister could not get a withdrawal agreement and that once we had left there was no way we would get a trade deal by the end of 2020. Like the cynics in Edgar Albert Guest’s poem, they scoffed:

“Oh, you’ll never do that;

At least, no one has ever done it;”

but like that poem’s protagonist, the Prime Minister “took off his coat” and went to it. I do not know if he

“started to sing as he tackled the thing

That couldn’t be done,”

but he did it. It was and is a good deal, which they told us “couldn’t be done”.

It is inevitable that there would be some extremely difficult transitional issues, as we switch from a system that we had been increasingly embroiled in for decades to a new arrangement. It is vital that Lord Frost and his team work with our European partners to get them resolved. For example, one firm contacted me to say that it sells leather goods made in Spain and Portugal. It found that the sale to Poland of one pair of shoes, worth £125, attracted £75 in customs fees. An engineering firm is charged 8% by Her Majesty’s Revenue and Customs to reimport bearings made in Nottinghamshire from the French sole distributor—British bearings. This is not what we understood the agreement to mean. I do not think it is what the negotiating teams understood it to mean either, so we have to continue to work with our European partners to sort out implementation.

Brexit does offer big opportunities. Businesses in Dudley South trade with countries in every corner of the world, and the new trade agreements being negotiated and agreed will open up that trade further. The comprehensive and progressive agreement for trans-Pacific partnership in particular offers incredible potential to increase trade both with some of our closest trading partners and with some of the world’s fastest-growing economies.

However, Brexit is not only about international affairs. It is not only about theoretical government. It is about how we can do things differently here at home. It offers us the chance to look at things such as how we can better structure taxes and have a lower rate of duty, for example, on draught beer or on-sales. That was impossible while we were in the EU, but it is now possible post Brexit. It would allow taxes to better reflect the economic and social contribution that pubs make in all our communities. Taking back control does not mean that all our problems are magically solved, but it does mean that we have the power to take responsibility for those decisions here, in the interests of those we represent.

Covid-19: Ethnic Minority Disparities

Mike Wood Excerpts

Monday 1st March 2021 Commons Chamber

[Kemi Badenoch]

I thank the hon. Lady for her question. I am sure that Department of Health and Social Care Ministers will be able to provide a more extensive answer specifically on free hotels. From my perspective, the vaccine is the route out of the pandemic, which is why we are making sure that those who are most vulnerable are getting the vaccine and that any hesitancy is reduced. We are also making sure that there are isolation payments for those who are unable to work to ensure they are not financially impacted.

[Mike Wood (Dudley South) (Con) [V]]

I welcome the Government’s decision to ensure that all adults on the learning and disability register are to be prioritised for a covid-19 vaccine, after the efforts of broadcaster Jo Whiley and disabilities charities. Can my hon. Friend confirm that everyone who is on their GP’s learning and disability register will now be invited for their jab, providing protection to a group who we know are at a higher risk from the virus?

[Kemi Badenoch]

Yes. The Government are following the recommendations of the independent experts at the JCVI on which groups to prioritise for covid-19 vaccines. Following its updated advice, to make the process simpler and faster we will be inviting everyone for vaccination who is on their GP’s learning and disability register. This will mean that those who are at a higher risk from the virus can get the protection they need. It is not a change in the priority list from the JCVI, but an operational clarification to ensure that those with a severe and profound learning disability receive their offer as part of cohort 6. Adults with Down’s syndrome face an evidenced high risk of severe outcomes and have therefore already been added to the list of clinically extremely vulnerable conditions. People with Down’s syndrome were prioritised for the vaccine in group 4 accordingly. As my hon. Friend can see, and I thank him for his question, this is something we are very much alive to. We continue to look at the data to make the best recommendations for vulnerable disabled people.

Future Relationship with the EU

Mike Wood Excerpts

Thursday 10th December 2020 Commons Chamber

[Penny Mordaunt]

I thank the hon. Lady for her question. She will know that throughout all this we have sought to provide not just the practical support that Northern Ireland businesses need, but also the confidence in the environment that businesses need to continue to make investments. She will be aware that this morning the Northern Ireland Office announced a further £400 million, which has been committed to assisting businesses and boost economic growth, and to support throughout the transition. She has my assurance that the success and some new opportunities that will come with this if we get it right for Northern Ireland are there to be seized.

[Mike Wood (Dudley South) (Con)]

My right hon. Friend and I both campaigned for leave in the referendum, but more importantly 70% of voters in Dudley South and a majority nationwide decided to take back control over our laws, our borders and our trade. Does she agree that an agreement is only going to be possible if it respects that decision and ensures that laws are made here in the United Kingdom?

[Penny Mordaunt]

My hon. Friend is absolutely right, and this comes to the heart of it. I cannot, I am afraid, give him any guarantees as to whether the EU will reconcile itself with those facts, and I cannot say what the outcome will be. All I can assure him of is that the Government will stick to those principles and are absolutely determined within that to do everything we can to secure a deal.

Spending Review 2020 and OBR Forecast

Mike Wood Excerpts

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

For the record, no one is trying to pit anyone against anyone else. This is simply about doing what is fair for the country. It is the right decision to make. It is a difficult decision, but we have taken a targeted approach to protect those on lower incomes and those in the NHS, ensuring that a majority of public servants will receive an increase in their pay next year. I would be happy to go away and look at the gender pay gap in the civil service and ensure that we are making good progress on eliminating it.

[Mike Wood (Dudley South) (Con) [V]]

We all want to see people’s wages go up again after the pandemic, and my right hon. Friend’s statement provides a strong foundation for securing that. At a time when many workers in the private sector face cuts or job losses, I can understand why it is necessary to pause public sector pay rises, other than those for frontline NHS workers and those earning less than the national average. Will he join me in urging the Independent Parliamentary Standards Authority to ensure that that freeze also extends to the salaries of Members of Parliament?

[Rishi Sunak]

My hon. Friend makes an excellent point, and the way he framed it was spot on. He will be reassured to know that the Chancellor of the Duchy of Lancaster has written to IPSA on behalf of the Government, the Prime Minister and I to express our views on the situation, to inform it about the pay policy that we have put in place in the public sector and to urge it to take account of that when it sets pay policy. Of course, it is an independent body, but I hope very much that it will look at what we are doing.

Lockdown: Economic Support

Mike Wood Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

I am slightly surprised to have a question from a former Chief Secretary that does not recognise the infrastructure investment that the Prime Minister set out in the summer and that my right hon. Friend the Chancellor updated the House on through his summer economic update, including the £2 billion going into green jobs and public sector decarbonisation, and the massive investment in High Speed 2, in road investment strategy 2, and in control period 6 through the various rail schemes that the Government have committed to. We are accelerating the delivery of that infrastructure through Project Speed.

The right hon. Gentleman is right to speak to the fact that there is a jobs challenge, and I think the concerns about the pressure on employment are shared across the House. That is why it is so important to get the right training package in place. That was addressed by my right hon. Friend the Chancellor on 24 September with his winter plan setting out schemes such as the kickstart scheme, which is up and running and is already delivering results. That is how, together, we will weather the storm in terms of bringing forward infrastructure investment but also reskilling people where they do lose their jobs.

[Mike Wood (Dudley South) (Con)]

Clearly hospitality and retail have had a particularly difficult time since the spring, but, as hon. Friends have said, there are very many businesses that may not quite come under hospitality, retail or leisure but rely almost entirely on those sectors for their business. Will my right hon. Friend look at how industries such as brewing, pub supply chains, events and weddings can access the support that the Government have provided, such as through the grants and business rate holidays, so that they can protect their jobs and still be growing and thriving once this pandemic is beaten?

[Steve Barclay]

First, I refer to the answer I gave earlier about the universal nature of the package. Another such area that my hon. Friend did not mention is the fishing sector, which was particularly impacted not only through its supply of the restaurant trade but through its exports, which were also hit. We have listened to concerns there and put in some additional support. But the best way we will support businesses, whether in the wedding sector or elsewhere, is by getting the virus down. That is why we have taken the comprehensive measures that we have for the next four weeks. That is the best way to be able to open up these sectors and get the people who have been furloughed or supported through the self-employed scheme on to the job support scheme, where they will then qualify for the furlough bonus, which will be further support that is available.

Covid-19 Economic Support Package

Mike Wood Excerpts

Wednesday 14th October 2020 Commons Chamber

[Mike Wood (Dudley South) (Con)]

Hospitality is one of Britain’s biggest employers. Some 3.2 million people across the country rely on hospitality for their jobs, including 4,300 of my constituents in Dudley South. My right hon. Friend the Chancellor has always been a real and true friend of the beer and pubs sectors, in particular. He knows how much they have been affected by this pandemic, and he has delivered a comprehensive and unprecedented economic support package. Without such a support package, many thousands of pubs and breweries would simply not have survived the spring. They would not have got through the first phase of this outbreak.

I do not know whether the Chancellor has seen his rather fetching likeness on posters in pubs up and down the country, recognising the contribution that many of those support measures have made to making our pubs and other hospitality viable over the past six months but, as we are now firmly in a new phase of the pandemic, new measures are vital for those businesses that are not necessarily legally compelled to close. For those that are required to close their doors, the grant he has announced, although it may not cover the whole rent and all the fixed costs, will make a substantial contribution to the costs those businesses incur even before they pull a single pint or serve a single meal. However, there are also enormous challenges facing venues that are not legally compelled to close, those in tiers 1 and 2, where the legal restrictions that have been introduced make it impossible for them to operate. We know that one in 10 pubs has never reopened since March’s lockdown, and about two thirds of those that did reopen were already trading at a loss last month. That was before the introduction of 10 o’clock closing, mandatory table service, and of course the new restrictions that have come into effect today.

[Alex Cunningham]

Simon Longbottom of Stonegate, one of the largest pub groups in the country, has written to me about this, and he could have been making the speech that the hon. Gentleman is making now. He is very concerned that in tiers 1 and 2, he gets no help with his business costs whatsoever. Can the hon. Gentleman give the Chancellor some direct advice on what he needs to do about that?

[Mike Wood]

I would not presume to attempt to direct my right hon. Friend the Chancellor, beyond saying that pubs and hospitality cannot, of course, continue to operate with almost no income and without additional support that is proportionate to the legal restrictions they face. Those restrictions may not be in their immediate area. I have heard today from Titanic Brewery, a brewery in Stoke. The majority of its customers are in Liverpool and Merseyside, which are tier 3 areas, but that brewery will not receive support even though that is where its customers are based. These pubs need urgent additional support; otherwise, many of them are going to close their doors for good and never reopen, which would be a huge loss to not only our economy, but our communities.