Brian Mathew

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.