Basildon MP urges government to reduce tax pressures on pubs

James McMurdock, Reform MP for South Basildon and East Thurrock, spoke passionately in Westminster Hall last week as he called for policy changes to protect the future of pubs and allow them to be preserved as “vital community hubs”.

He warned that increasing tax burdens on the hospitality industry could have catastrophic and irreversible effects, a fear echoed by landlord Steve Haslam.

Mr Haslam, who owns the Bread and Cheese pub in Benfleet and the White Horse in Billericay, fears that without extra support the trend of pubs closing will only become more prevalent.Back our pubs - James McMurdock, MP for South Basildon and East Thurrock (Image: James McMurdock)

Tory MPs across south Essex, including Castle Point’s Dame Rebecca Harris, Rayleigh and Wickford MP Mark Francois and Richard Holden, MP for Basildon and Billericay, all backed Mr McMurdock’s calls ahead of the Labour Government’s Autumn Budget on Wednesday.

Mr Haslam said: “Running a pub today, is certainly not for faint hearted. No longer is it a career choice, because the difficulties are mounting. When I say mounting, the MP is correct, the tax burden on pubs is increasing and getting ever higher.

“There is potential of business rates quadrupling if they go back to normality in the budget, and it goes up from next April. It is getting more and more difficult.

“We have had Covid, and the cost-of-living on top of that. Energy bills have quadrupled. There is the ever-increasing wages, which I am not against, but it all then adds up. “We will lose the life of British pubs, the small independents that people go to with friends and family and create memories. You will lose that.”

Mr McMurdock highlighted the impact in his South Basildon and East Thurrock constituency, where he claims on 23 pubs remain and warned that further tax increases would drive more closures and reduce revenue for the Treasury, rather than increasing it. He also raised concerns about consequences of policies such as minimum pricing, warning they could lead to worse public health outcomes by pushing drinking into unregulated spaces.

Calculations by the British Beer and Pub Association last week found unless the Government takes urgent action, the sector faces a “timebomb” in soaring costs. The BBPA said if the business rates relief end, as currently scheduled at the end of March, along with an inflationary uplift, it would cost the sector £235million.

The group is calling on the Government to cut beer duty, reform business rates, and maintain the “vital” business rates relief for the sector.

Mr Francois said: “A good pub forms part of a community’s soul and should be cherished, not taxed out of existence.”

Dame Rebecca added: “I agree with James. The hospitality sector is vital to the whole economy and increasing costs on businesses with National Insurance increases and alcohol duty increases destroy the viability of pubs restaurants and hotels, costing jobs and damaging their communities.”

Mr Holden called on the Government to “back business”.

He said: “My track record in standing up for pubs is clear after I led the campaign to get lower duty for draught beer for which I was awarded Parliamentarian of the Year by the Beer All Party Group. Labour have a choice in next week’s Budget – to back business or once again give in to their union paymasters, raising taxes and driving up costs for residents in Basildon and Billericay.”

Neither David Burton-Sampson, Labour MP for Southend West and Leigh, or Bayo Alaba, Labour MP for Southend East and Rochford responded to requests for comment.