Finance (No. 2) Bill

Calum Miller Excerpts

Committee of the whole House
Tuesday 13th January 2026 Commons Chamber

[Dr Evans]

My right hon. Friend has served in government, so he understands why it is important to have a fixed point that all of us in this House can reference, as well as—most importantly—his constituents who own a pub, a café or a hotel and are going to be impacted. That is why I want to see new clause 9 passed, because it will go a long way towards helping us understand the impacts those people are facing. If the Government are going to do something for pubs, as is rumoured, I simply pose the question, “Why pubs, and not cafés, restaurants or hotels?”

Turning to new clause 26, if my memory serves me right, the biggest cheer that the 2024 Budget got from Labour Members was when the 1p reduction in the pint was announced. What do we see this time around in the Budget? A 2p increase—that did not get cheered. Again, maybe Labour Members did not see it, or maybe it was hidden in the detail, which brings us to where we are today. This seems to be the problem: whether we are debating thresholds, as we did last night, or pubs, rateable values and duty today, either the Government do not know what they are doing, or they are wilfully pulling the wool over our constituents’ eyes. Fortunately, though, the Opposition are here to point out the wrong that is happening—to do our duty as an Opposition and hold the Government to account by tabling amendments such as new clause 26. That is why I will be supporting new clauses 9 and 26. Until we see some support for pubs, this is the only way that we in this House can hold the Government accountable and apply transparency to what is actually going on in the Treasury, in No. 10, and in the country.

[Calum Miller (Bicester and Woodstock) (LD)]

I would like to place clause 86 in the wider context of the Budget’s impact on the hospitality sector and, in particular, the village pub. I was very grateful to the Under-Secretary of State for Business and Trade, the hon. Member for Halifax (Kate Dearden), for agreeing to meet two landladies from my constituency in December. The Minister heard from Becky, who runs the Red Lion and the White Hart in Eynsham, and from Donna, who runs the Oxfordshire Yeoman in Freeland.

As other Members have highlighted, village pubs are at the heart of their communities, but Becky and Donna described how hard it is to make the books balance. Donna gave the example of the work she does in her community. She has a number of regulars, and when one of them does not come in on a given day, she will give them a call to check he is all right and suggest he comes in—not because he is a big drinker, but because it is somewhere to be warm and sociable, and she knows that he has mental health challenges. In other ways, these two publicans are contributing to the lives of their communities.

Becky put in front of the Minister some of the cost increases she has faced. A fillet of fish cost her £2.30 in June 2023; when she saw the Minister in December 2025, the latest cost was £4.90. As well as these food prices more than doubling, energy prices have rocketed, but the greatest anxiety for these two publicans came from tax and regulation. Labour costs have increased with employer NICs—Becky gave the example of her employer NICs, which in gross terms have increased by more than four times over three years. Both publicans have had to release staff, with Donna now working more than 80 hours a week, serving as both the pub’s chef and general manager. She places orders on Mondays and Tuesdays when covers are lower, and she is in the kitchen Wednesday through Sunday.

Meanwhile, business rates represent a bombshell. Becky faces an increase in business rates at the Red Lion of nearly 120%, but she is outdone in my constituency by the 223% increase at the Lion in Wendlebury. Finally, Becky highlighted the impact of VAT on the hot food sold in her pub. Before the Budget, Liberal Democrats called for a 5% cut in VAT to offer some relief to the hospitality sector. Take that fillet of fish that has gone up by over 100% over two and a half years. Over the same period, the Treasury’s VAT take on that food has gone up by the same amount, an incredible increase in revenue with no relief for publicans.

The Minister asserted earlier that the Government were backing British pubs, despite the many hits to their bottom line. She also said that the structure of duty increases and reliefs is intended to support pubs by raising the relative price of alcohol consumed at home, compared with that consumed in a pub. Other Members from all parties have made proposals to go further, but many pubs have sought to diversify and increase the share of income and profit from food. Those that have tried are now being hobbled by the impact of VAT, which is another multiplier of costs. Becky and Donna are but two examples of the many publicans across my constituency who are holding on by their fingertips.

[Dr Luke Evans]

Does the hon. Member share my concern that often the only way that publicans can get around this issue is to either reduce their hours, reduce their staffing or take on more themselves, when they are already working 24/7 to try to deal with the costs? With this kind of change, the impact will be irreconcilable.

[Calum Miller]

I wholeheartedly agree with the hon. Member. Both the publicans I am talking about are working in excess of 70 hours a week. They have laid off staff, meaning fewer jobs for those who might be able to engage in entry-level occupations. It is hitting employment as well as other aspects of the economy.

Too many local pubs in my constituency, as in so many others, have shut, and other publicans are considering leaving the sector. When they go, communities lose a key institution that brings people together at the heart of their villages. That is why I strongly support the Liberal Democrats’ new clause 9, which would ensure an assessment of the cumulative effect of this Government’s careless assault on the hospitality sector.

[Lucy Rigby]

I am grateful to all Members for their contributions to today’s debate. Almost all of them have spoken passionately about their local pubs. I specifically acknowledge the contribution of the hon. Member for Angus and Perthshire Glens (Dave Doogan), just to deny him the pleasure of my not doing so.

We are taking a prudent and responsible decision to uprate alcohol duty in line with RPI. That is fully assumed in the OBR’s baseline forecast, so failing to uprate would come at a real cost.