In an admission unlikely to endear him or his party to many voters, Shadow Small Business Minister Toby Perkins MP admitted to brewers at SIBA BeerX in Sheffield that Labour might have to retain the Beer Duty Escalator if it is in government after the next election.
Pressed by delegates for a commitment to end the escalator, the MP for Chesterfield said he “recognised” the impact annual duty rises above inflation have had on pubs, and would make the industry’s case, “but a Labour Chancellor would have to address the deficit.” Other industry sectors, such as construction, would also be making the case for special treatment by the Treasury, said Perkins.
In which case, the industry will have to hope that the Chancellor ‘sees the light’ and removes the Escalator in next week’s budget.
Minimum pricing
The MP also told delegates that he personally supports minimum pricing, but insisted a Labour government “will not see minimum pricing as a stealth tax, but as a brake on irresponsible pricing, no more and no less”.
He said minimum pricing would help to address the price differential between on-trade and off-trade alcohol, and the related issue of pre-loading. “Pubs are not getting the benefit of money spent on alcohol, but are dealing with many of the problems that spending causes,” said Perkins.
Leased and tenanted agreements
On the issue of reform of leased and tenanted agreements, Perkins said that “Labour does not oppose the beer tie in principle,” but believes anyone signing a pubco agreement “should be no worse off than if they were free-of-tie.” He called on pubcos to offer a free-of-tie option as a standard choice for incoming tenants and lessees.
New legislation: impact on small businesses
Labour would also make it a requirement that any proposed new legislation included an assessment of the impact on small business.
“No one needs to tell you how diverse the pub industry has become over the past few years. We have a diversity of pubs that are the envy of the world, but many of the problems they face are similar,” he said. “We can’t solve all the problems facing pubs, but we can ensure that anyone entering the industry has a fair crack of the whip.”