Pubs Code: Guest Beers

Motion made, and Question proposed, That this House do now adjourn.—(Martin McCluskey.)

In 1916, during the great war, the Government introduced the famous “Carlisle experiment.” Concern about the intoxicating effects of Carlisle’s pubs on nearby munitions production resulted in the state ownership and control of the pubs and beer trade in my constituency from 1916 to 1973. How great, Members may ask, was the concern that it warranted the nationalisation of Carlisle’s pubs and breweries, including those of my own great-grandfather? A few short miles up the road from Carlisle lay His Majesty’s Factory Gretna. Regarded as the greatest munitions factory on earth in the first world war, it was where the cordite, nicknamed the devil’s porridge, was mixed. More a town than a factory, it stretched 9 miles from Mossband in my constituency to Eastriggs in the constituency of the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), the same distance as between this House and Wembley stadium.

At the heart of this gargantuan site were 30,000 workers who lived in two purpose-built townships. The factory and the townships had their own independent transport network, power source and water supply system, but not pubs. For that the workers had to walk into the small town of Gretna, where the number of pubs could not cope with the demand, and so they would board the train to nearby Carlisle where pubs were so plentiful that it was said that one could swing from the door of one public house to the door of the next without touching the ground.

Thirsty at the end of a long shift and doubtless relieved to have survived another day mixing cordite, evening-shift workers would often bribe the train driver to ensure they would arrive early enough to get the drinks in before closing time. Meanwhile, in anticipation of their arrival the barman of Boustead’s bar near Carlisle station would line up 500 shots of whisky. Drunkenness ensued. With the landlords away fighting for King and country, the elderly and the widowed who were left running the pubs, along with a depleted local police force, were powerless to control the drinking. The result was a fourfold increase in alcohol-related offences in the city, high numbers of absenteeism and low levels of production at the Gretna factory. The scale of the problem was so severe that it was thought to be the major contributing factor in the shortage of shells on the frontline. Something had to be done.

The Munitions of War Act 1915 had given the newly formed Ministry of Munitions additional powers over factories and factory workers. A central control board was established with the power to control the sale and consumption of alcohol in areas, such as Carlisle, where the excessive consumption of alcohol was believed to be having an adverse impact on the war effort. With the Munitions Minister David Lloyd George already having declared drink to be the greatest deadly foe that Britain faced, Carlisle’s pubs and breweries were nationalised in June 1916. Some 138 out of 321 licensed premises were closed, with the remainder remodelled or rebuilt.

The first state management pub, the Gretna Tavern, opened just a month later in July 1916. Members might be interested to know that the very last state management pub, the Border Reiver, opened in July 1971, just four days before the Licensing (Abolition of State Management) Act was passed. For almost 60 years, all of Carlisle’s public houses were completely tied to the state-run brewery in Carlisle. The beer was brewed at a reduced level of alcohol, its advertising was tightly controlled and specified by Whitehall, and the architectural design, both external and internal, was overseen by a state-appointed architect. Consumer choice, it is fair to say, was severely limited.

Following privatisation, the pubs were sold in large job lots and snapped up by the major breweries of the day, meaning that even to this day the majority of our pubs in Carlisle are owned by large pub-owning businesses where the beer supply is tied to them. Today, pub landlords continue to face restrictions on what they can buy, sell or serve, meaning that they cannot always provide what their customers demand. For the small local independent breweries—including Great Corby, the Carlisle Brewing Company, West Walls Brewing Co. and the Old Vicarage brewery in my constituency—getting their locally produced beers sold in a local pub remains a challenge.

I will give way first to my hon. Friend.

I, too, have brilliant independent breweries in my constituency, such as Renegade and Double-Barrelled. They make a huge contribution to our local economy and, importantly, make a great pint. Will my hon. Friend join me in welcoming the Government’s determination to improve access to the market for independent brewers and to get great local beers into our pubs?

I do welcome that, and I thank my hon. Friend for her intervention.

I commend the hon. Lady for bringing forward this debate. I spoke to her beforehand to ascertain what she was trying to achieve. Strangford has had a resurgence of alcohol production, including the microbrewer Ards Brewing Company, just a few minutes away from me on the Carrowdore Road in Greyabbey. It is a necessity that small brewers can sell in their local pub, and I believe it was a mistake not to allow exemptions for smaller breweries. I support the calls to allow these exceptions. Does she not agree that we must do what we can to let the wonderful craft breweries have a shot in the local market?

I agree with the hon. Gentleman. I have visited and spoken to brewers in my constituency, and they tell me that they just want the chance to compete on a fair basis.

The Society of Independent Brewers shows that 75% of beer drinkers believe it important that pubs offer a range of craft beers from small breweries, such as Glastonbury Ales and Fine Tuned Brewery in my constituency. Does the hon. Member agree that small breweries should be included in the new lower hospitality rate, so that they no longer need to pay 40 times more a pint in business rates than large breweries?

I thank the hon. Member for that intervention. I will come later in my speech to other points that the Society of Independent Brewers and Associates is campaigning on. I will make a little more progress.

Recently in Cumbria, the Carlsberg Marston’s Brewing Company closed Cumbria’s principal brewery, Jennings in Cockermouth, and brought to an end 200 years of local brewing. The need to create opportunities for local breweries to sell their local beer to local drinkers in Carlisle is, therefore, more pressing than ever.

I thank my hon. Friend for securing this important debate. I have two fantastic breweries in my constituency—Tractor Shed and Ennerdale Brewery—which are not that far from Carlisle, despite the state of some of the roads and rail. Would it not be fantastic if more Cumbrian breweries found a route to Cumbrian pubs for their fantastic beer?

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.

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.

May I start by extending my own congratulations? I also congratulate my hon. Friend the Member for Carlisle (Ms Minns) on securing this debate and on a very engaging and well-informed speech. It took us through an interesting period in her constituency’s history. I was unaware of the nationalisation of pubs in Carlisle. If that is a suggestion that she wishes to put forward for our next manifesto, she will be aware of the policy-making processes and how to do that. Unfortunately, at this stage I cannot confirm that we have any plans to nationalise pubs—that probably will not come as a surprise to anyone.

Before I go on to address my hon. Friend’s points, I will say a little more about the industry more generally, because it plays a critical role in supporting local communities in every corner of the UK. The interest that we have had in this debate shows how important pubs are. They are not just any other local business; they are a part of our history, culture and heritage, and they are a huge employer. The wider hospitality sector employs around 2.2 million people.

The Minister is making a very important point, because whether it is the Carlisle Brewing Company in the hon. Lady’s constituency or Kinver Brewery in mine, our family breweries play an important role in providing that diversity of product and high-quality beer that is particular to our local communities. Does the Minister recognise the devastating impact of the Chancellor’s changes to business property relief in the Budget on the future of so many family breweries across the country?

I will go on to some of the very positive things that were announced in the Budget to help breweries and small businesses in particular.

There are about 154,000 businesses in the hospitality sector, generating revenues of around £52 billion per annum. They create vibrancy in communities, support wider social objectives, provide accessible jobs, support community cohesion, and provide welcoming spaces for those who feel isolated and want to enjoy the company of others.

It is an important fact that over 80% of the beer consumed in the UK is brewed here—not in the Palace of Westminster, but in the UK—while UK brewers also export over 1 billion pints of beer annually to over 100 countries, according to the British Beer and Pub Association.

I thank the Minister for giving way, and I thank my constituency neighbour, my hon. Friend the Member for Carlisle (Ms Minns), for securing the debate. Although we might not be brewing beer in this place, we do consume some of it. In the spirit of shameless plugs that we have all participated in this evening, I would like to point out that my local brewery, the Keswick Brewing Company, is serving Keswick Gold down in the Strangers Bar. If it is slightly easier than travelling up to Cumbria, I wonder if the Minister would like to join us for a pint at some point.