London Daily

Focus on the big picture.
Sunday, Aug 02, 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
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×