Rural Pubs: Fiscal Support

Debate between Wera Hobhouse and Brian Mathew

Wednesday 17th June 2026 Westminster Hall

[Brian Mathew (Melksham and Devizes) (LD)]

It is a pleasure to serve under your chairship, Mrs Hobhouse. I thank the hon. Member for Meriden and Solihull East (Saqib Bhatti) for securing this valuable debate.

Rural pubs and breweries across the country are suffering under an excessive tax burden that is stifling investment and employment opportunities. Melksham and Devizes is home to Wadworth, a fantastic local company, which has been brewing beer in Devizes since 1875. In a recent meeting with Toby, Wadworth’s managing director, the severity of the financial situation facing the hospitality industry was made clear. The reduction of the threshold for employer national insurance contributions will cost £750,000 a year across the business, which includes 129 tenanted pubs.

Yesterday, my team spoke to the landlady of one such pub, Sarah of the Three Magpies in Seend, who said that, because of the increase in the minimum wage, rising national insurance contributions and higher training costs, she had to cut back on the number of local youngsters that the pub employs during the busy summer season. To put that in perspective, last year there were 20 members of staff at the Three Magpies over the summer; this year there will be just nine. That is 11 young people missing out on an invaluable opportunity to gain the skills, knowledge and experience to set them up for future careers.

We all saw the Milburn review’s stark warning that one in six young people could be classed as NEET within five years if no action is taken. We urgently need to review the impact of the burden on the hospitality industry on youth employment and ensure that we are not taxing future generations out of employment opportunities.

In addition to the national insurance challenges, UK alcohol duties are the second highest in Europe, pushing up prices for consumers and reducing profit margins for landlords. The Treasury’s current trajectory will suffocate Britain’s proud pub culture, with more choosing to purchase alcohol from the supermarket and drink it at home. That poses increased health risks, because at-home consumption lacks the natural boundaries of a pub setting.

At a time when the cost of utilities has skyrocketed, the Government should surely be doing far more to support the UK hospitality industry, not adding to its woes. Both Toby and Sarah told us that one of the simplest ways to support our pubs would be a VAT reduction for the industry. It would free up capital to invest in either new staff or the business itself. Similarly, duty on alcohol should be reviewed, with the duty paid on a UK pint amounting to 10 times the amount paid in Germany.

We have to recognise the important role that rural pubs play. Socially, they are the beating heart of villages and help to regulate consumption, keeping evenings merry. Economically, they can be engines of growth for rural communities, providing a springboard into employment for many young people and investing in the local area. It is time the Treasury recognised that fact and significantly increased its offering of support to ensure that we can all continue to enjoy a pint down the local.

[Wera Hobhouse (in the Chair)]

How about that for timekeeping? I thank every Member for staying so disciplined within the time limit.

USAID Funding Pause

Debate between Wera Hobhouse and Brian Mathew

Tuesday 10th June 2025 Westminster Hall

[Brian Mathew]

I completely agree with the hon. Member. An ActionAid project in Zambia safeguarding women from sexual exploitation was forced to close almost overnight.

Oxfam says that, thanks to the cuts to USAID, 95 million people could lose access to basic healthcare, potentially leading to 3 million preventable deaths a year, and 23 million children could lose access to education. When services collapse and diseases can spread unchecked, people lose hope, and they do not stay put. Migration pressures rise, conflicts hit new boiling points and markets react. As covid taught us all too well, deadly viruses such as Marburg and Ebola could leap from remote villages to our high streets in a matter of weeks, especially when the staff to deal with them have been given stop orders and removed from frontline duty.

We are already seeing other powers whose interests do not align with ours begin to fill the gaps left by USAID. China and Russia are expanding their influence in regions where western credibility is weakening. Just last week, some of us on the IDC heard from an official in the Burma/Myanmar freedom movement that USAID’s withdrawal has happened at the same time as China has made quick inroads to prop up the military and curry influence in its efforts to get hold of rare earth minerals from that troubled country.

The United Kingdom has long prided itself on being a force for good in the world. Our work and leadership with British aid has not only saved lives but championed the best of our British values: fairness, the rule of law, health, education and opportunity across the globe. That is soft power in its most tangible form, and it is worth its weight in gold—and, more importantly, in lives and livelihoods. Sadly, we have made our own aid cuts recently, from the 0.7% GNI commitment down to 0.5% and then 0.3%. The reality is that with so much being spent on hotels for asylum seekers, instead of allowing them to work and pay their way while their status is determined, as little as 1% of UK GNI is now being spent on genuine aid.

We know what to do. We know that investing in WASH makes sense. We know that investing in girls’ education reduces child marriage, improves economic outcomes and reduces inequality. We know that investing in pandemic preparedness, vaccine infrastructure and vaccine research protects not just vulnerable people around the world, but our NHS and public health here at home. International development is therefore smart policy. It reduces the risks that we would otherwise spend billions more to contain. What should we do? We must reaffirm our commitment to restoring the 0.7% target and publicly commit not to just the rhetoric of aid, but to actually doing it—and doing it well.

The withdrawal of USAID has created a moment of reckoning; the world is watching and the vulnerable are waiting. I will end by paraphrasing President John F. Kennedy in his special message to Congress on foreign aid on 22 March 1961. We are aware of our obligations to the sick, the poor and the hungry, wherever they may live. It will both befit and benefit us to take this step boldly, on which will depend substantially the kind of world in which we and our children shall live. It is time for us to stand up and be counted.

[Wera Hobhouse (in the Chair)]

I remind Members that they should bob if they wish to be called. I will call the Front Benchers at 10.28 am. It looks like all Members will get to speak if they stick to six or seven minutes.