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British Pubs

That is an issue of muscle in the purchasing of beer, and it also involves supermarkets that are able to sell beer cheaply and buy it more cheaply from brewers than those pubs that are tied to a particular estate. That issue needs to be looked at in its generality, and I hope that the OFT will look hard at the survival and prosperity of the network of pubs throughout the country. Let me return to Irene Nuttall of The Durham Ox in Longridge. She lists a few points, and perhaps I can quickly rattle through some of the problems faced by landlords and landladies, which I am sure a lot of hon. Members will recognise. First, aggressive supermarket pricing is crippling for a lot of pubs. Secondly, the tie can be oppressive and should be opened up. Thirdly, dry rent is paid, but a lot of publicans also pay residential rent, as they are required to live on the premises, which can be incredibly expensive and insurance on top of that takes a huge chunk of money. Fourthly, the duty on pub-sold beer is too high. Irene Nuttall mentions the sleight of hand in the VAT reduction last year from 17.5 to 15 per cent. However, the Government waved a magic wand, and the duty was increased on beer, so that its price was not reduced when the rate of VAT came down. However, when VAT went back up to 17.5 per cent., so did the price of beer.