Beer Duty

Jim Shannon Excerpts

Tuesday 15th July 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Dr Murrison, and it was a pleasure to hear the hon. Member for Woking (Mr Forster) set the scene so well. I was intrigued by the hon. Member for Carshalton and Wallington (Bobby Dean) referring to the fact that Lib Dems were here. It made me wonder what that means about the Lib Dems—I say that in jest, of course.

I am thankful that beer has become more than the mainstays of Harp, Carling and Guinness, which are all wonderful beers and stouts but increasingly being challenged by small independent brewers. There is only one small independent brewer in my constituency, but they are good guys; they have a good company, and I wish to mention them. Grant in my office tells me that Bullhouse East craft beer, which began in Newtownards, is top class and, for any of the big brands, hard to beat. I have tried it myself and I also think it features up there, but that is just my opinion.

Hon. Members may not be aware that, in Northern Ireland, small independent breweries are severely restricted from offering the choice and variety of local products that consumers demand, because of the liquor licensing laws. That limits Northern Ireland’s economic, hospitality and tourism opportunities and means that 99% of beers sold in Northern Ireland are imported. This year, Northern Ireland lost 20% of its breweries because of the limits. The current review of the licensing system, including the surrender principle, is the opportunity to introduce much-needed reforms. I will ask a question of the Minister at the end of my speech and I will be happy for him to get back to me in written form if that makes it easier, because of the particular question that I intend to ask.

Granting Northern Ireland’s independent breweries the ability to properly open taprooms, as happens in England, Scotland and Wales, would enable small businesses to reach their potential, meet consumer choice and increase tourism. I believe that is what we should be considering for Northern Ireland, so that is my wish and my request to the Minister. The Licensing (Northern Ireland) Order 1996 limits the number of alcohol licences available. Under the surrender principle, an existing licence must be surrendered before the granting of a new one. It is a quirk in the law, but it means that someone has to hand one in so that someone else can buy one, and the premium is exorbitant.

Obtaining a new licence costs well over £100,000, which is unaffordable for most small businesses. In some areas of Northern Ireland, it is impossible to get a new licence. The Licensing and Registration of Clubs (Amendment) Act (Northern Ireland) 2021 introduced a new but extremely limited local producer’s licence, but its cost of £10,000 or more outweighed its limited benefits. It was very limited, restricting a brewery to opening twice a week for 12 hours and selling only its own products.

Northern Ireland’s 23 small breweries struggle to sell their products in local pubs, as the vast majority are locked into sole-supply contracts with globally owned breweries. That is another negative for those people who want to be more independent, to have more choice and to give their customers more choice. Many of those globally owned breweries do not allow local draught beer to be sold. Currently, the only realistic option for Northern Ireland’s small independent breweries is to export their beer to the rest of the UK or to the Republic of Ireland. In England, Wales and Scotland, small independent breweries are permitted to apply for a licence to properly open taprooms, which helps to create jobs, regenerate the community and grow tourism.

The one thing that we have in Northern Ireland and have tried to encourage—this applies in particular to my council, Ards and North Down borough council—is tourism. We are very keen to ensure that tourism can produce economic advantages, jobs, money and opportunities for small businesses to grow as well. Northern Ireland’s independent breweries need the same opportunities to grow and thrive. Any discussion on Northern Ireland’s top-class beer industry must come with us urging Government to support our local breweries and, obviously, to liaise with the Northern Ireland Assembly to press for reform. That is what I look to the Minister for today. As I said, I will be very happy if the Minister wishes to come back to me on this issue in a letter to indicate what can or cannot be done.

The one thing I do know is that we in Northern Ireland want to play our part. We do not have a large number of breweries; we have 23 across Northern Ireland, with one of them being in my constituency, but I am very keen to see the opportunities presented by the proposal from the hon. Member for Woking, who as I said set the scene very well, and for us to be able to be part of that. I am ever mindful—others have referred to the news in the paper in the last two weeks about the number of pubs that will close in the United Kingdom over the next period of time; I think one per week was the figure referred to—that there is pressure on the hospitality sector and, in particular, on pubs. They are part of the community. Whether people are going for a drink, to socialise, to have fun, to meet people or for a meal, pubs are integral. Let us do our best to ensure that we keep all the ones that are there, so that in the future they can still be parts of the communities that we live in.