Pubs Code: Guest Beers

Debate between Nusrat Ghani and Julie Minns

Tuesday 12th November 2024 Commons Chamber

[Ms Minns]

I agree with my hon. Friend. From March next year, pub tenants just 700 yards from my constituency will be able to open up a direct relationship with local breweries such as those that my hon. Friend referred to and have beer from small independent breweries served to their customers. The Scottish pubs code, championed by the Labour MSP for West Scotland, who brought it forward as a Member’s Bill, is due to be introduced in 2025. It is similar in many respects to our own pubs code, which governs England and Wales, but for one crucial element. In regulating the relationship between tied pub landlords and tenants, it aims to promote fairness and equitable treatment within tied pub lease agreements. It also allows Scottish pub tenants to enter into a guest beer agreement whereby the tenant can sell at least one beer in any format—including cask and keg —chosen by them at a price they determine. They can change that as frequently as they wish. The beer must be of a brand where less than 5,000 hectolitres—I am reliably told that is about 875,000 pints—was produced in the previous production year. That means that it is beer from small local breweries that qualifies and not that from the larger breweries.

That will empower tenants, allowing them to respond to their customers’ requests, and support small local breweries. Introducing a guest beer agreement in the rest of the UK could be worth £28 million to local breweries. It would widen consumer choice, help landlords and support small local businesses, so I am delighted that the Chancellor and Ministers have been watching developments in Scotland closely and promised in the Budget last month a consultation on ways to encourage small breweries to retain and expand their access to UK pubs. The consultation provides an opportunity to maximise consumer choice and support local businesses by enabling more guest beers. It is an important development, and it shows that the Government want local community businesses to have the opportunity to compete, grow and expand.

As we have heard, 78% of the beer sold in our pubs comes from just five global brewing companies. In comparison, our 1,700 small breweries represent only about 6% of the market. That needs to be urgently reviewed to ensure that there is a level playing field where small businesses can compete fully.

On that point, I congratulate the Society of Independent Brewers and Associates on the launch of its new “indie beer” campaign, which seeks to make it easier for beer drinkers to identify beer from independent breweries in pubs, bars and shops as demand for local beer rises across the UK. Research shows that most beer drinkers are unaware that the mass-marketed craft beer brands that we see in our pubs across the UK are in fact owned by global brewers. A good example of that from my own county is Wainwright beer. Inspired by the chronicler of our famous Cumbrian fells, the name Wainwright is synonymous with the county of Cumbria, and that leads many visitors to believe that they are sampling a locally brewed beer when they come to Cumbria; in fact, it is just one of a range of beers produced by the global beer company Carlsberg. The majority of beer consumers say that they want to buy beer from genuinely independent local breweries. I believe that SIBA’s campaign will help many more do just that.

These issues are wider than just the tenanted pub market, with small breweries facing restrictions in the leased, managed and free house pub markets as well. Perversely, many free houses are not free at all when it comes to beer. Sole supply contracts with global breweries are prevalent, restricting and determining what beers can be sold. Increasingly, these global breweries are also using proprietary equipment in pubs, which prevents a local brewery from even being able to connect their casks to the pub and offer their products to the landlord at all.

Publicans, brewers and beer consumers in my constituency hope that the Minister will be able to start the consultation process as soon as possible. I wonder whether the Minister may be able to offer some clarity on when that might commence, so that all interested parties can have the opportunity to provide their insights and experiences. It would also be appreciated if he could confirm that this will include issues experienced right across the UK, including in England, Wales, Scotland and Northern Ireland. Will it also look at the whole pub market, including tenanted, leased, managed and free houses? Will it include both keg and cask draught beer, which is predominately sold in our pubs?

Finally, will the Minister look closely at the Scottish guest beer agreement to see whether its provisions could be included in our own pubs code for England and Wales, perhaps as part of the statutory review of the pubs code, which I understand is due next year? Should the Minister ever find time in his busy diary, I would like to invite him to visit my constituency to meet some of my local breweries and to join me for a drink—albeit not a locally brewed one—in the Border Reiver, the last pub in Britain to have been designed, funded and built by the UK Government.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Before I call the Minister, I have been updated on the recent wedding this weekend of the hon. Member for Inverclyde and Renfrewshire West (Martin McCluskey). I congratulate him, and I understand that his husband Ben has been waiting quite some time to see his new husband. That is some pressure for the Minister.