MP: Reforms must continue to save pubs

Mike Wood said measures announced by Chancellor Philip Hammond that will see a freeze on beer duty and a reduction in business rates of one third for medium-sized firms were a 'massive boost' for the pub industry.

But the Dudley South MP says the 'reforms must continue' if the flood of pub closures across the country is to stop.

He wants to see a full review of business rates, as well as substantially lower taxes for beer sold in licensed premises in a bid to give to give pubs the shot in the arm they need.

Mr Hammond announced the new measures in his Budget this week after scrapping a planned tax hike that would have seen prices rise by more than three per cent.

Across Britain around 18 pubs each week close their doors for good – nearly 1,000 a year – despite the industry employing one million workers and boosting the economy by £27 billion.

Tory MP Mr Wood, who chairs the all-party parliamentary beer group, said: "This is a massive boost for British pubs and British beer, which have been under incredible pressure.

"Unlike other retail outlets pubs can't just move to another location or go online, they are a vital places for our communities.

"Reducing business rates by a third will mean the difference between pubs staying open and going bump.

"However, we can't stop here and the reforms must continue. Business rates remain a major threat to pubs of every type and size, and there needs to be fundamental reforms.

"Our economy is not really based on land value anymore, so taxing businesses based solely on their location does not really make sense.

"We also need to look at the fact that beer in pubs is still taxed at the same level of duty as beer sold in shops at cost price.

"The many added benefits that pubs bring to communities must be reflected, and this means a lower level of tax for beer sold in pubs."

Mr Wood addressed beer campaigners at a mass lobby in Parliament this week.

Jackie Parker, CAMRA national chairman, echoed Mr Wood's comments. She said: "The decision to freeze beer duty is welcome, and will no doubt go some way to keeping the British pub-going tradition affordable.

“However, the decision to implement the business rates relief for some and not all pubs is not enough to help protect pubs from extinction – we need wholesale reform of the business rates system to tackle the grossly unfair burden placed on pubs."

The new measures will see business rates slashed by one third over two years for firms with rateable value of £51,000 or less, and duty on beer, cider and spirits will stay the same.