London Daily

Focus on the big picture.
Friday, Apr 03, 2026

MPs call for tax cuts to save their local pubs

MPs are calling on the government to reduce the tax burden on pubs and breweries in next month's Budget.

In a packed debate in Westminster Hall, politicians from all sides celebrated the boost the businesses gave to their local communities.

But they said the duty put on beer and high business rates for local pubs were causing many to go out of business.

The government said alcohol taxes had already been cut in real terms due to a series of beer duty freezes.

Pubs have been in decline in the UK for some time, with 6,000 lost since 2010, but there are tentative signs of recovery.

The first increase for a decade in the number of pubs was recorded at the end of 2019 - a net gain of 320.

Opening the debate, Tory MP Mike Wood said the pub and beer industries were "the greatest success stories of the past 20 years" in UK business, with almost 900,000 jobs depending on them.

But he criticised the system of business rates, saying it was a "basic fairness issue" when pubs were responsible for 2.8% of all rate revenues collected - despite only accounting for 0.5% of rate-paying businesses.

Mr Wood also said beer duty in the UK "remains much too high" - despite government freezes and cuts since 2013.

To shouts of "shame", he said: "If you bought a pint in each of the other [main] beer-producing countries - a pint in Germany, a pint in the Netherlands, one in Spain, one in Belgium and one in Poland - you would still have paid less duty on those fives pints than you would have on just a single pint bought in Britain."


'Common sense'

Other MPs joined in with stories of pubs and breweries in their constituencies, raising the concerns they have.

Labour MP Lilian Greenwood praised The Plough in Radford - in her Nottingham South constituency - saying it was a "nucleus for the local community".

But she said the local Nottingham Brewery, which uses the pub as a tap room, "worries that if action isn't taken on beer duty... the price of a couple of pints in the pub simply won't be able to compete with the supermarkets much longer".

The SNP's Lisa Cameron called for "common sense" when deciding business rates for pubs, saying the Glassford Inn in her constituency of East Kilbride, Strathaven and Lesmahagow was under threat of closure.

Tory MP Giles Watling reminisced about a "beautiful pub" called The Crown, near Stratford-on-Avon, where he had stayed 30 years ago during his previous career as an actor.

"I went back after 20 years or so... to the same village. The pub had closed and been developed into housing. I now found this place where people were no longer talking to each other. The heart had been torn out of the community. This village had fundamentally died."

Labour's Bill Esterson raised problems around small brewery tax relief, citing the Neptune brewery in his Sefton Central constituency.

Under current rules, if a business produces less than 5,000 hectolitres of beer, it pays 50% of full excise duty - but it must pay the full rate if it makes a drop more.

"There is a very strong case for pressure to be put on the Treasury to change those rules and enable those brilliant manufacturers and employers to grow as they wish to," said the MP.


Duty freeze

The SNP's Stephen Flynn warned any reform had to take into account issues with drinking, saying around 22 individuals die every week in Scotland due to alcohol abuse.

He added: "That is a shocking figure that none of us can be happy about, and of course in Scotland we've seen action on that through the introduction of minimum unit pricing which we expect will save 392 lives over just five years.

"So when we look at taxation, and we certainly support the reform of beer excise duty, when we look at taxation we need to do so with a holistic view in terms of public health."

Treasury minister Simon Clarke, responding for the government, praised the "clear consensus" among MPs, about the "the centrality of pubs and beer industry and solutions that exist to make sure we help the industry to thrive".

But, he said a cut in alcohol duties would would represent a significant loss in revenues for the Exchequer.

"The effective inflation means that in real terms, beer duty is being cut every time we have frozen [it] over the course of the last several years," added the minister.

"Even in nominal terms, beer duty is now lower than it was in 2012. But not withstanding that, we continue to review all taxes."

Newsletter

Related Articles

0:00
0:00
Close
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
×