Beer Duty

Tim Loughton Excerpts

Thursday 5th February 2015 Commons Chamber

[Andrew Griffiths (Burton) (Con)]

I am delighted to have secured this debate. I recognise that the final Adjournment debate of the week is not exactly the shift that every Minister wishes for, but I am delighted that she is here today for this important debate. It is important because I am the first MP for more than 10 years to be able to say that beer sales are on the up; beer sales are in growth. That is a direct result of the decision taken by the Chancellor and this Government to scrap the hated beer duty escalator, and to cut beer duty not once, but twice. It is those decisions that have led to the renaissance in brewing that we see at the moment.

In this short Adjournment debate, I intend to make the case to the Minister about why she should complete a hat-trick that would be more memorable than Michael Owen’s hat-trick when he put three past Germany in that magnificent victory for England. I pay tribute to all the people who helped to deliver that important scrapping of the beer duty escalator, and those two cuts. In particular, I pay tribute to the Campaign for Real Ale and its 170,000 members who led the campaign, lobbied Parliament and their MPs, and made the case so vigorously on behalf of the brewing industry and the beer that they love so much.

I also congratulate the British Beer and Pub Association that represents brewers and pub companies across the country, and the Society of Independent Brewers—SIBA. The Minister knows that there has been a renaissance in small brewers across the country. Some 1,700 brewers are now producing excellent beer across the country, and that is as a result of economic decisions taken by this Government as part of their long-term economic plan.

I also wish to thank the TaxPayers Alliance, which ran the Mash the Beer Tax campaign, and The Sun newspaper. As we know, The Sun is always on the side of the hard-working man and woman in Britain, and it got behind this campaign to cut beer duty so that Britons could enjoy one of those simple pleasures: a pint of great British beer. The Minister will know about the great support that has been shown for this campaign by the Burton Mail—an august publication. I had the privilege of sending her the front page of the Burton Mail, which supports this campaign for the third cut in beer duty.

[Tim Loughton (East Worthing and Shoreham) (Con)]

While revelling in the congratulations that my hon. Friend is dolling out left, right and centre, may I slightly rain on his parade? Although we are delighted with the abolition of the escalator, the last Budget, which of course introduced the 2% cut in beer duty and a freeze for spirits, actually increased duty on wine by 2.47%. As chairman of the all-party parliamentary wine and spirits group, may I ask whether he agrees that we need a better deal for wine drinkers as well?

[Andrew Griffiths]

I recognise the point that my hon. Friend makes, and I would be forced to agree with him as Mrs Griffiths is no stranger to a large pinot grigio. I point out that the campaign last time was led by a doughty Back Bencher who argued vociferously for cuts in alcohol duty, and I hope that there is some consistency in that argument in the weeks to come.

I thank colleagues on both sides of the House. Although the hated beer duty escalator was Labour’s design, colleagues from all political parties supported the campaign. I would particularly like to pay tribute to members of the all-party parliamentary beer group, the all-party parliamentary save the pub group and, of course, my colleague the hon. Member for Leeds North West (Greg Mulholland), who was instrumental in that campaign.

I am the MP for brewing. Burton is the home of British brewing, and some 5,873 people in my constituency are employed in beer and pubs. A thousand of them are young people, and it is interesting that this industry can offer great opportunities to the 16 to 25-year-olds the Government are trying to get into work and off the unemployment lists. The hospitality industry, and the pub industry in particular, represents a massive opportunity to help in that respect. I point out to the Minister that 1,136 people in Witham are employed in beer, pubs and brewing, so she will understand the issue’s importance.

In my constituency, the gross value to the local economy is £348 million, and we contribute £438 million to the Treasury—something that, I am sure, delights the Minister. Nationally, the industry contributes £10 billion in taxation. At a time when we want to pay off the debt and pay down the deficit, that contribution must not be underestimated. Beer and pubs are vital to this country, and 1 million people rely on the beer and pub industry for their employment. I have alluded to the fact that 46% of those people are between the ages of 16 and 24.

Beer is a success story. We brew the best beer in the world, and 82% of all the beer consumed in this country is brewed here by brewers big and small, producing a fantastic product. Although I understand the point made by my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), wine is imported into this country—[Interruption]—ostensibly, but I have sampled, as has Mrs Griffiths, some fine English and Welsh wines.

[Tim Loughton]

I am delighted to hear about Mrs Griffiths’s delectation of fruit-based drinks for ladies, as I believe someone calls them. Is my hon. Friend aware that there are now 448 commercial vineyards and 131 wineries in the United Kingdom, and that the hectarage given over to vineyards here has more than doubled in the past 10 years, with 4.5 million bottles of excellent quality, world-beating English wine produced in this country and not imported?

[Andrew Griffiths]

I absolutely understand the points that my hon. Friend makes, but I gently point out that seven out of 10 drinks that are drunk in pubs are beer. If we value our community pubs, we can support them by supporting the great British brewing industry. Beer gets people into our community pubs, which are the backbone of our society, and each pub contributes £80,000 a year to the local economy. Of course, some of them offer other services—they are the post office, the local shop, and offer many facilities. We have heard of groups who have meals on wheels in their pubs. Pubs play an important role, and, as I have said before, they form the fabric of our community: the great British pub.

--- Later in debate ---

[Priti Patel]

My hon. Friend is absolutely right. We have spoken about this at the APPG. The pub is absolutely pivotal to boosting Great Britain’s brand. Tourism and our rural economies are part of that. When we speak about pubs, it is about enjoyment—the fact that people enjoy them. As a policy maker and a Minister, I sometimes think that that is not sufficiently taken into account.

The case for supporting pubs and brewers as institutions is overwhelming. We see that across the country, beyond pubs, in the supply chain and the wider industry. Maltings and other factors in the supply chain are crucial and pivotal to our economy.

[Tim Loughton]

My hon. Friend the Member for Burton (Andrew Griffiths) made a fantastic economic case for the beer industry that the Minister is fortunately echoing. Will she apply the same criteria to the wine industry, which accounts for some 22% of sales in pubs and restaurants, accounts for no less than 67% of all the wine duty paid in the whole of the EU, and contributes £3.7 billion to the Exchequer? Will she see a delegation from the all-party group on wine and spirits, led by me? If we can combine that with happy hour at the Treasury, I will gladly bring along a bottle of Nyetimber, Ridgeview, or my favourite champenois, Breaky Bottom—“Probably the best bottom in the world”, as it markets itself.