Calum Miller

I would like to place clause 86 in the wider context of the Budget’s impact on the hospitality sector and, in particular, the village pub. I was very grateful to the Under-Secretary of State for Business and Trade, the hon. Member for Halifax (Kate Dearden), for agreeing to meet two landladies from my constituency in December. The Minister heard from Becky, who runs the Red Lion and the White Hart in Eynsham, and from Donna, who runs the Oxfordshire Yeoman in Freeland. As other Members have highlighted, village pubs are at the heart of their communities, but Becky and Donna described how hard it is to make the books balance. Donna gave the example of the work she does in her community. She has a number of regulars, and when one of them does not come in on a given day, she will give them a call to check he is all right and suggest he comes in—not because he is a big drinker, but because it is somewhere to be warm and sociable, and she knows that he has mental health challenges. In other ways, these two publicans are contributing to the lives of their communities. Becky put in front of the Minister some of the cost increases she has faced. A fillet of fish cost her £2.30 in June 2023; when she saw the Minister in December 2025, the latest cost was £4.90. As well as these food prices more than doubling, energy prices have rocketed, but the greatest anxiety for these two publicans came from tax and regulation. Labour costs have increased with employer NICs—Becky gave the example of her employer NICs, which in gross terms have increased by more than four times over three years. Both publicans have had to release staff, with Donna now working more than 80 hours a week, serving as both the pub’s chef and general manager. She places orders on Mondays and Tuesdays when covers are lower, and she is in the kitchen Wednesday through Sunday. Meanwhile, business rates represent a bombshell. Becky faces an increase in business rates at the Red Lion of nearly 120%, but she is outdone in my constituency by the 223% increase at the Lion in Wendlebury. Finally, Becky highlighted the impact of VAT on the hot food sold in her pub. Before the Budget, Liberal Democrats called for a 5% cut in VAT to offer some relief to the hospitality sector. Take that fillet of fish that has gone up by over 100% over two and a half years. Over the same period, the Treasury’s VAT take on that food has gone up by the same amount, an incredible increase in revenue with no relief for publicans. The Minister asserted earlier that the Government were backing British pubs, despite the many hits to their bottom line. She also said that the structure of duty increases and reliefs is intended to support pubs by raising the relative price of alcohol consumed at home, compared with that consumed in a pub. Other Members from all parties have made proposals to go further, but many pubs have sought to diversify and increase the share of income and profit from food. Those that have tried are now being hobbled by the impact of VAT, which is another multiplier of costs. Becky and Donna are but two examples of the many publicans across my constituency who are holding on by their fingertips.