Stuart Anderson MP calls on government to support South Shropshire’s pubs
Stuart Anderson MP has called on the new government to continue a package of support for pubs across South Shropshire when it delivers its first budget in October. He has said that it must maintain the 'Brexit Pubs Guarantee', which was announced in last year's Spring Budget and secures the pledge that pubs will always pay less alcohol duty than supermarkets. Differential duty was not possible under rules imposed by the EU. Having left the EU, the previous government confirmed, as of last August, draught duty will always be lower compared to the non-draught equivalent.
Under the previous government, the generosity of Draught Relief was significantly extended from 5% to provide a 9.2% duty reduction on draught beer and cider products below 8.5% alcohol by volume. It also increased relief from 20% to 23% for wine, spirits-based, and other fermented draught products. This helps level the playing field between pubs and supermarkets by ensuring that there will always be a lower duty rate for draught products - allowing pubs and brewers to price their on-trade products more competitively. This means that every pint, in every pub across the UK pays less duty than their supermarket equivalent. For this year, it will be up to 11 pence lower than the duty in supermarkets.
Earlier in the year, the previous government also froze alcohol duty until 1 February 2025 - extending the six-month freeze that had previously been announced at Autumn Statement in 2023. This followed further action taken by previous the government last year, when it took a third of properties out of business rates completely through Small Business Rates Relief. The government also announced business rates support worth £13.6 billion over five years - including a more generous Retail, Hospitality and Leisure (RHL) relief scheme that increased from 50% to offer a 75% discount on business rates up to a cash cap of £110,000 per business. Around 230,000 retail, hospitality, and leisure properties, including pubs, have been eligible. This is saving the average independent pub over £12,800 in 2024-25.
Stuart has expressed concerns that the new government may scrap the support, having recently confirmed that it will “replace” the business rates system in England. He said that the new government must property consider the needs of the hospitality sector, including pubs, before doing so. He also said that it must also look at other fiscal measures that can be taken to support the sector, including by reducing VAT. Stuart added that supporting pubs and the wider sector is a key priority in his plan to support South Shropshire’s rural economy and unlock its potential. It recognises that pubs make an important contribution to rural communities like South Shropshire by fostering a sense of place and community.
Stuart Anderson MP said:
“Our pubs in South Shropshire are hugely valued community assets. They not only support local economies and provide spaces for communities to come together but create valuable local hubs that strengthen social bonds and encourage wider integration – creating a real sense of community pride. I love to nip into the George and Dragon Inn in Much Wenlock for a spot of lunch or for an evening out with my wife at The Mill at Leighton, as well as many other great community pubs. To recognise the value of our great British pubs, I am calling on the new government to confirm that it is committed to continuing the last government's package of support measures - including the Brexit Pubs Guarantee, which means that the duty paid on a draught pint in a pub will always be lower than its equivalent in a supermarket. The government should also continue to freeze alcohol duty and discount business rates for small businesses.”
