That this House has considered taxation on beer and pubs.
I am delighted to have secured another important debate covering the brewing and pubs sector in the UK. This one is particularly timely because the all-party parliamentary beer group will hold its event celebrating the beers of the UK in Parliament this evening, to which, of course, all Members are very welcome.
Beer and pubs in the UK are a home-grown manufacturing success story. They are represented in every part of our United Kingdom and in every one of our constituencies. Some 80% of the beer brewed by this country’s fantastic brewers is consumed in this country. The industry supports almost 900,000 jobs in all corners of the country, including more than 1,000 in my constituency.
I congratulate the hon. Gentleman on securing this debate, and he is absolutely right about the success story of our pubs and brewing industry. However, does he agree that we have seen far too many pubs close in recent years and that we really need to value them as community hubs?
I am most obliged to my hon. Friend for giving way, and I congratulate him on securing the debate. May I amplify the point that was just made and ask whether he agrees that the public house is the heart and soul of the local village in many rural areas?
I would go further than that: in many areas, and not only rural areas, the pub is the last service, and often the last facility, in the town or village. Often, it is not just a place to drink, but also the place with the shop or where people get their hair cut. There might also be a jobs club or any number of other services there.
The Plough Inn in Radford, which is in the inner city of Nottingham and which is also the brewery tap for Nottingham Brewery, is precisely the sort of nucleus of the local community that he has described and the landlady, Mel, is a legend. Does he agree with the managing director of Nottingham Brewery, Phil Darby, who says he is worried that if action is not taken on beer duty and small brewers relief, the price of a couple of pints in a pub will simply not be able to compete with the price in supermarkets for much longer?
The debate is about taxation of pubs and breweries. I received an email from one of the three excellent small breweries in my constituency—it was from Les O’Grady, who runs Neptune Brewery, as well as a taproom there. He employs three people, and he makes the point that his challenge is the current relief—the taper—and the fact that it is difficult for him to overcome that barrier in growing his business. That is a challenge faced by all small breweries. Does the hon. Gentleman agree that there is a strong case for pressure to be put on the Treasury to change those rules, to enable these brilliant manufacturers and employers to grow as they wish to?
The small and microbrewers of this country have been one of the great success stories of the past 20 years in brewing. They have transformed brewing and beer across the country—both the diversity and the quality. The small brewers relief scheme that was introduced under the previous Labour Government has done a fantastic job in increasing the number of small brewers. However, we now need to look at the disincentives the existing thresholds create in terms of growth, expansion and employing more people. For example, Black Country Ales, which is based in my constituency, faces exactly the issues to which the hon. Gentleman referred.
I congratulate my hon. Friend on securing this important debate. The hon. Member for Sefton Central (Bill Esterson) and my hon. Friend are exactly right about the importance of the small brewers tax relief. Does my hon. Friend agree that this issue is about not only changing the shape of the relief curve, to remove that barrier to growth for the really successful craft brewers, but maintaining the 50% reduction in duty for the very small craft brewers so that they can get a foothold in the marketplace?
My right hon. Friend makes an important point. I have a feeling the Minister might just touch on small brewers relief in his response to the debate, because the Treasury has of course conducted a review into it, and we are all looking forward to seeing some of the results of that review—hopefully, we will see them before too long.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)