It is no secret that the British beer and pub sector is struggling. This year alone, more than 378 pubs are set to close – that is more than one pub every single day, putting over 5,600 jobs at risk.
Nationally, the hospitality sector employs 3.5 million people, roughly 10% of all jobs. Within this, the beer and pub sector alone contribute £34.3 billion to the UK economy and generates £18 billion in tax, whilst supporting around one million jobs from grain to glass.
As the MP for Woking, I represent a constituency that is home to a great little brewery called Thurstons in Horsell, as well as Asahi’s UK headquarters. The beer and pub sector supports over 1,800 jobs, whilst contributing £100 million to our local economy.
Woking is, and always has been, my home and I have many fond memories in our local
pubs. From Sunday lunch with the family at the Red Lion in Horsell, to drinking with friends at the Drumming Snipe in Mayford, pubs are far more than just businesses.
They are hubs within our communities. They are used as venues for weddings and funerals. They host mental health groups and veterans meet-ups. Many sponsor local sports teams or host fundraisers and community events. They help to combat loneliness, support our local economies, and preserve a key part of British culture.
This is why I believe it is so vital they are protected and fairer approach to beer duty would help secure their future – something I’m sure we could all raise a glass to!
On the 15th July, I held a debate in Parliament to call for a reduction to beer duty to help offset the financial burden of the new Extended Producer Responsibility (EPR) scheme.
This flawed Department for Environment, Food and Rural Affairs (DEFRA) policy categorises glass bottles used in pubs as ‘household waste’, despite being collected through commercial recycling contracts.
EPR is meant to fund the cost of removing packaging from household waste streams, not from businesses that already pay for their recycling. It places an unfair cost burden on brewers and venues, with pubs facing duplicate charges for the same glass, despite it never entering the household.
DEFRA has acknowledged that the policy is wrong, that it was never intended to be implemented in this way. Whilst it has committed to the industry to find a solution, no fix has yet been delivered, and it has pressed on with the scheme regardless.
Whilst I do welcome the recent 1.7% cut in alcohol duty on draught beer and cider, this government is giving with one hand and taking with the other. The reduction is more offset by a 3.6% increase on bottled products and the costs associated with EPR.
Unless brewers raise prices or the Government steps in, the economics simply do not add up. Brewers will barely make a profit on bottled beer.
One of Labour’s key economic election promises was to grow the economy, so why are the Government ignoring calls from the industry to help deliver one of their key missions?
The UK already pays far more than our European neighbours. Our beer duty is 12 times more than in Spain and Germany. I accept that a reduction would mean less tax per pint in principle, but in practice, it would bring a great benefit.
It would help restore balance and provide a lifeline to an industry that is under significant pressure. This is a long-time campaign from the Campaign for Real Ale (CAMRA) and has widespread support from across the industry – and, as it turns out, from MPs across the political spectrum.
I was delighted to have Members of both the Conservative and Labour parties join me in this debate to speak in support of the measure.
They are clearly conscious that all the people – from the farmers in their fields, to the brewers in their brew houses, to the people drinking in pubs – are our constituents. We are here to serve them, which is why I firmly believe that it is our duty to reduce beer duty.
It is our duty to reduce beer duty…
