Beer Taxation and Pubs
Debate between Baroness Anderson of Stoke-on-Trent and Mary Robinson(5 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ruth Smeeth
I will touch on taxation in a moment.
I want to talk about the role of pubs in British culture and society, because they are a core part of who we are. People enjoy coming to the UK for tourism—an issue that we need to discuss even more as we head towards Brexit—and there is nothing more English or British than holding a pint. Tonight at the Sentinel business awards, which I cannot attend because of the debates in the House, everyone will toast their awards with a pint of local beer, because it is part of our community and our culture.
Ruth Smeeth
I am afraid that I have run out of time for interventions.
As my hon. Friend the Member for Sheffield, Heeley (Louise Haigh) said, there are some stark figures about the impact of taxation on the sector that we need to acknowledge. Amazon UK paid £4.5 million in corporation tax last year. Black Sheep brewery, chaired by the wonderful Andy Slee, a Stoke-on-Trent constituent, paid £8 million in beer duty. Amazon UK has a turnover of £1.98 billion. Black Sheep brewery has a turnover of £19 million. Minister, there is an issue here. In 2016, eBay UK paid £1.6 million in corporation tax. Titanic brewery paid 25% of its turnover to HMRC—£2 million.
On the disparity in business rates, following the rate revaluation last year, Titanic brewery pubs’ rateable value went up by 20% across Staffordshire. The Amazon warehouse in Stoke-on-Trent fell by 10% in rateable value. There is a disparity, and it is simply not fair for online and offline businesses. Breweries and pubs cannot move off the high street, nor would we want them to.
Small business rate relief has been touched on, but I am going to run out of time. All I can ask the Minister at this point is to look at the requests made by the Society of Independent Brewers about the impact of the changes. We are at a cliff edge, and unless this is smoothed out, investment to enable smaller brewers to reach the next level will stop. I reiterate my invitation to the Minister earlier this year to come and have a pint with me at Titanic brewery at his earliest convenience.