Thank you for contacting me about alcohol and beer duty.
Like you, I believe the pub plays a crucial role in community life - both as a source of enterprise and as a vehicle for community action - and I am dismayed at the current rate of closure. This is an industry that is of huge importance to our constituency, its communities, and indeed to the national economy. This is a significant economic and social driver that we need to do more to support. I fully recognise therefore the value that pubs can provide to small, rural communities and I welcome the Government's efforts to support this through the taxation system.
I welcome the new measures put in place to help businesses across the country, particularly pubs. It is reassuring that no pub or other business in the hospitality sector will be required to pay business rates this year. Local authorities will apply the rates relief automatically and no action is required by pub rate payers.
I also welcome the temporary cut to VAT from 20 per cent to 5 per cent for all food and non-alcoholic drinks, which initially applied from 15 July 2020 to 12 January 2021, but has been extended to 31 March 2021. This will continue to support restaurants, pubs, bars, cafés and similar premises across the UK. The Eat Out to Help Out scheme has supported thousands of businesses and help protect the jobs of over a million employees. Pubs, restaurants and others that participated will be fully reimbursed for the discount by the Government.
In 2013, the Government took the decision to end the beer duty escalator, and beer duty has been frozen or cut several times since then. Duty on spirits has been frozen over the past two years. As a result of these changes, a typical pint is cheaper than it would have been had these measures not been introduced. I share your concern about the future of pubs and the hardship caused by the coronavirus outbreak. The steps taken by HMRC to make it easier to claim back the duty on any beer thrown away as a result of pub closures were a timely and sensible intervention.
I welcomed the announcement that for only the second time in 20 years every alcohol duty has been frozen, meaning that this freeze covers duty on spirits, beer, wine, and cider.
I want to see the Government continue to support pubs and keep costs down for consumers. Any decision to modify alcohol duty in the future is a matter for the Treasury. I have ensured my colleagues are aware of the points you raise and reminded them of the importance of local pubs in our communities. There is a broad recognition of the need to reform the current duty system to support the alcoholic drinks and pubs sector in the longer term, and a call for evidence is due to be published before the end of 2020.
Thank you again for taking the time to contact me.