Pubs and Community Funding

Motion made, and Question proposed, That this House do now adjourn.—(Anna Turley.)

22:03:00

I am grateful to have the time to debate Government community funding and support for local pubs. We are fortunate to have so many amazing pubs in Reigate, Redhill, Banstead and our villages, and they are far more than just a place to have a pint. They are the heart and soul of our towns and villages, bringing people together and enriching daily life. They provide jobs and a sense of community, and they even support our local farmers and producers by selling their goods. Sadly, we have lost many pubs in recent years, with ever-increasing costs and rising taxes pushing them to closure. Every loss is felt in the community, diminishing social cohesion and shrinking our local economy. Pubs contributed more than £34.4 billion to the UK economy in 2024 and paid more than £17.4 billion in tax, despite the tight margins they operate on. Just as many households have struggled with high energy bills and inflation, so too have pubs, which are still feeling the residual effects of lockdowns during the pandemic and the change in consumer behaviour that came with them. They now face increased employer national insurance contributions and business rates on top of everything else.

I commend the hon. Lady, who is quickly making a reputation for herself in the House as an assiduous MP, whether it be in Westminster Hall, Adjournment debates or last Friday—well done to her. Every one of her constituents should be proud of all her industrious work here. Strangford and Ards have suffered greatly from the hospitality business downturn. To give one example, the Parlour Bar was built in 1735—it has been there a long time—but it is under pressure, like Romas and other pubs in Newtownards. Some 65% of hospitality businesses plan to reduce employment levels, risking job losses and impacting worker income; 55% intend to cancel planned investments; and 26% will cut trading hours due to the increase in the minimum wage and national insurance contributions. Does she agree—I think everyone in the Chamber has the same opinion, and we look to the Minister for a good reply—that the Government and the Minister, with the sympathy and compassion he has for businesses, need to step up to ensure that those businesses survive beyond 2025, and perhaps for another 300 years?

I agree with the hon. Member. It is really important that we support our pubs. We cannot continue the approach of squeezing them until the pips squeak. We will lose them, and once we do, we will never get them back.

From next year, the Government will be permanently lowering business rates for retail and hospitality businesses. Does the hon. Member agree that it would be good if the Minister confirmed that that permanent lowering will be in relation to rates as they currently are rather than pre-covid rates or last year’s rates?

I thank the hon. Lady for that contribution. I would welcome any clarity from the Minister about that. In Redhill, we have an amazing pub called the Garibaldi, which is a community pub—a not-for-profit pub—that gives back to the community in so many ways. On walking in, you feel the warmth straightaway from Shiv, Juliette and the other volunteers, who are always there to give a welcome with a smile. There is always something going on: quizzes, karaoke, Bhunnys street food—even a book club. My personal favourites are the forces fry-ups for veterans on a Saturday morning—sometimes I go along to help serve the tea, coffee and toast; I normally do it quite badly—and the music bingo. Out back, there is the community garden, which has been transformed with the help of the Garibaldi gardening group volunteers. It is now accessible to everyone, including young adults with special needs who visit with YMCA East Surrey. Every bit of profit the Garibaldi makes gets ploughed back into things that benefit the community. It is there for the benefit of Redhill residents, not for any other reason, and it is extremely good at what it does. That is incredibly clear whenever I visit. People from all walks of life are sitting side by side with friends and neighbours enjoying a chat and a drink, all part of making the Garibaldi the special place that it is.

I am sorry to interrupt the hon. Member’s flow. The Garibaldi sounds like an amazing pub. When she described how it reinvests its funds, it reminded me of the clubs in my constituency—perhaps clubs rather than pubs are more popular in the north-east. Does she agree that many of the things she has said about the community importance of pubs also apply to clubs such as the Hardwick social club in my constituency?

I thank the hon. Gentleman for that intervention. Absolutely, those things apply to clubs and to any premises where we might listen to live music —they apply to so many places. I will focus on pubs, but I hope that we will have many other debates on all those other things. The Garibaldi has stood on Mill Street for 150 years. It has survived two world wars, multiple recessions and two global pandemics. It has seen Redhill transform around it into the modern, bustling town it is today, but it is now at risk if the funds cannot be raised to buy the building. Rather ironically, the pub is so much more than bricks and mortar, but it needs to buy the bricks and mortar if it is to survive. In previous years, the community ownership fund has provided a great opportunity for community groups to acquire community buildings. It has awarded more than £135 million to 409 projects across the UK, including several community pubs. Sadly, however, the fund is no longer available. The new Government have announced their intention to introduce a new right to buy for important community assets. This will no doubt bring many benefits and help to preserve valued community buildings and spaces. It will empower communities to save much-loved pubs and community halls, rather than just having to accept their loss. However, in order for groups to utilise this to the full, I ask the Minister whether they have any plans to introduce a fund to support the purchase of valuable community assets by the community. The Garibaldi is doing a sterling job of trying to raise the money itself, as I am sure many other groups around the country are doing, but it would be useful to know if there is any likelihood of new funding on the horizon that it could apply for to supplement its efforts. The Garibaldi is such an important part of Redhill—we cannot imagine Redhill without it—so I would be most grateful for any advice and support from the Minister on how we can secure it for future generations.

The hon. Lady is absolutely right to say that some sort of community ownership fund is required. Does she agree that the companies that own the pubs that the community is seeking to buy need to look after the properties? In Chardstock, the George Inn Continuity Group is trying to buy the pub, but the Wellington Pub Company is allowing water in through the roof, which is completely unacceptable. Does she agree that the pub companies that own the pubs need to look after them?

Obviously I do not know the details of that specific case, but I agree that we all have a collective responsibility to look after these important community assets. Before I bring my comments to a close, I would like to pay tribute to some other fantastic pubs in my constituency. I have quite a lot of them.

The hon. Member is talking about the resumption of the community ownership fund for pubs. Would the Minister consider other options, such as the British Business Bank, and look into how other funds could be used for this purpose?

I, too, would be interested in the Minister’s response to that question. I recently ran a campaign to find out which pubs were my constituents’ favourites, with the aim of reminding them of the pubs on their doorstep and the importance of supporting their local. The response has been phenomenal. It is clear that our pubs mean a lot to local people in Reigate, Redhill, Banstead and our villages, and I am pleased to say that the results are now in. I am sure the Minister is on the edge of his seat wanting to know. Before I put him out of his misery, I want to let him know that he is very welcome indeed—as is anyone here this evening—to visit for a pint. The winner of best food and drink pub and best pub garden is the Well House Inn, a pub in Mugswell that I know very well. I can personally vouch for the delicious burgers, and I have a tendency to make sure I visit around lunchtime.

The hon. Member has given an account of all the different pubs in her constituency, but these kinds of stories are happening across the country. In my constituency, we have the Royal Oak pub in Chapel Ash, which does great charitable work. It has the Midland Freewheelers Blood Bikes, who provide a courier service to deliver blood for the NHS. That is all done through volunteers. They are having a charity event next month where motorcyclists, cyclists, runners and walkers will support the city and celebrate the parks, the streets and the people of Wolverhampton. Does she agree that our pubs are not just places where we eat, drink and have a good time, and that they also do a lot of great charitable work, even supporting the NHS, which we need so much?

It is indeed impressive what the pub in the hon. Gentleman’s constituency is doing, and I completely agree that pubs are so much more than just places where we buy food and drink. Any of us that have pubs like those in our constituency are very fortunate. Going back to the Well House Inn, the amazing beer garden there is home to St Margaret’s well, which is reputedly mentioned in the Domesday Book. Those who are lucky may even catch sight of the resident ghost, Harry the monk, while enjoying a quiet pint of ale. The winner of best family pub is the Sportsman in Mogador, another excellent local pub. It was originally a hunting lodge for Henry VIII and is surrounded by the most beautiful heathland. Local residents very much enjoy a hike across the countryside to it with their dogs before enjoying a pint. It is also brilliant at supporting local businesses through its Christmas market every year.

The hon. Lady is making an excellent speech, as she did on Friday; I want to acknowledge that in the House this evening. She talks about the wonderful pubs in her constituency of Reigate; may I mention the Albert, the Westbury Tavern, the Swan, the Boat and Horses, the Bush inn and the Sneyd Arms in Newcastle-under-Lyme? These are excellent public houses that all colleagues are most welcome to visit. I congratulate her on securing an excellent Adjournment debate; we are here to celebrate our pubs—in Reigate, Newcastle-under-Lyme, and up and down the country, including in Strangford. Today I launch the 2025 best pub in Newcastle-under-Lyme competition. Will she join me in encouraging all my constituents to vote in that competition, to celebrate the wonderful pubs in Newcastle-under-Lyme?

The hon. Member makes me feel slightly less guilty for reeling off all the pubs in my constituency; now I am not alone in advertising all those amazing pubs. I absolutely encourage his constituents to vote in that competition, and to let him know what they love about their pubs. I will go back to the winners, as I know Members want to know who they are. Lastly, and rather appropriately given the subject matter of the debate—I promise this is not a stitch-up; this is actually what the numbers said— I am pleased to say that the Garibaldi has won best overall pub and best community pub. I am sure from my speech that Members will understand why it is so special, and why so many residents have voted for it, so I will not wax lyrical any further, but I hope the Minister will support me, the volunteers and local residents in trying to save this gem for future generations. Again, I reiterate my invitation: he should pay a visit when he gets a break in his busy schedule. I would love to take him on a pub crawl.

Perhaps the best invitation he will get all week!

22:16:00

I thank the hon. Member for Reigate (Rebecca Paul) for securing this important debate and for that kind invitation, which I will return to. Usually, at 10.17 pm, if there is a difficult question about pubs, it is whether you can squeeze in one or two more—normally the latter—but today colleagues have asked other, more important questions, which I look forward to addressing. The hon. Lady’s speech also felt a little like a tour of Reigate, which I really enjoyed. There are clearly some excellent pubs there, so I very much look forward to visiting. As the hon. Lady says, there is a long-term trend of communities losing important local assets that foster community cohesion. That has a knock-on impact on people’s satisfaction with the place they live in, and the strength of local communities. One of the defining features of this Parliament will likely be how well the Government and Parliament address that. We have to give communities agency over a place, and address the sense of decline that feeds that anger and loss. We recognise that there are good opportunities for communities to take over these assets and operate them successfully for the community. That allows people to continue to benefit from the places that matter most to them, and empowers communities to shape their area. What better example could there be of a community facility than a pub? As the hon. Lady says, pubs are at the heart of our communities, and serve as crucial community assets. They support local economies and provide spaces for community gatherings, and the best pubs offer essential services, as we have heard, such as support for vulnerable individuals. They foster a sense of community pride and help us tackle loneliness and social isolation. It was clear from the hon. Member’s contribution how passionate she is about supporting local pubs and the industry more generally. As we admirably heard from my hon. Friend the Member for Newcastle-under-Lyme (Adam Jogee), the best pubs competition is a great way of recognising the importance of these assets—in Surrey in the hon. Lady’s case, and in Newcastle-under-Lyme in my hon. Friend’s case. Clearly, the hon. Lady’s constituents valued the competition, too. Judging from what she said, it is not a surprise that the Garibaldi was successful, and I congratulate the pub.

As and when the good people of Newcastle-under-Lyme confirm the best pub of 2025, will the Minister come and have a pint? I will buy the first round.

I would not want the inducement to be seen as my reason for saying yes, although it is an attractive part of the offer. Of course, I will happily come. [Interruption.] I owe the hon. Member for Strangford (Jim Shannon) a trip to Newtownards, because on the day of the Retail NI high street awards, I awarded the win to Ballymena rather than Newtownards, and have felt a sense of loss ever since. I will also come and join him.

I am very grateful to the Minister for his indulgence in giving way. It would not be a free pint, because I have a long list of things that I want him to help me get sorted for the people of Newcastle-under-Lyme.

I have absolutely no doubt about that; nor do I doubt that my hon. Friend will take on those problems with vigour. The hon. Member for Reigate talked about the community ownership fund. I acknowledge the important work that it has done over our time in government and before. As she says, since 2021, it has awarded a total of over £135 million to 409 projects across the UK. In total, the fund has supported 52 local pubs with £13.7 million of funding. Those pubs will bring significant benefits to their communities. Those numbers are in the aggregate, but each pub is a community asset retained, adds huge value, and brings much joy. Let me highlight a couple of pubs that we awarded funding to in the December round. We awarded £300,000 to the Rectory in Chesterfield. The funding will secure the future of that vital community pub and social hub. It will also be used to create a wellness space and provide a home for a local community radio station—what a great way to spend public money. Similarly, the Swan community project in Tonbridge was awarded £300,000 in December to support the purchase of the Swan pub and for start-up and renovation costs. That pub has now been purchased, and will serve as a community hub that reduces isolation and improves social cohesion and wellbeing in the rural community. It will also provide work experience opportunities to those in the community. That is a great example of how quite a small amount of public money, in the grand scheme of things, can have a huge social benefit. I know from colleagues that there is considerable interest—I get written questions and correspondence on this each week—in what might come next. Colleagues will know that we have a multi-year spending review inbound, so there is a limit to what I can say, but there will be further announcements relating to communities this year, including on the community ownership of assets. However, there are things that people can use at the moment. I encourage any community groups seeking funding to preserve their assets, and to continue to use the guidance and tools available from the community ownership fund development support provider on the MyCommunity site. Those tools are rooted in the experiences of lots of community assets. Some of those community assets are state-funded; some have been able to secure funding from elsewhere. There is a lot to learn from that, and I encourage community groups to do so. I would be very interested in meeting the hon. Member for Reigate (Rebecca Paul) to talk about the Garibaldi—perhaps in the Garibaldi, or perhaps, in the interests of business, somewhere else first, although I would be very happy to retire to the Garibaldi afterwards—and what support the Department can give. There is another important community intervention that our Government have introduced: the £1.5 billion plan for neighbourhoods. It will deliver up to £20 million of funding and support over the next decade to 75 communities across the UK, to kick-start local growth and drive up living standards. The Government have a commitment to working in partnership with residents, business, grassroots campaigners and local authorities to deliver the priorities of local people and drive renewal. As I have said multiple times from the Dispatch Box, we want less of us and more of local communities, because they are the experts. There are already lots of pre-approved interventions in the prospectus that areas can take forward to support their local pubs. There is support for developing, restoring or refurbishing local cultural and heritage assets and sites, such as pubs, including for new uses by the community, as well as grants for the development, promotion and upkeep of local tourist attractions. We heard from the hon. Lady a couple of examples of historical pubs in her community. That is the sort of thing that the plan for neighbourhoods money can be spent on. There is also, more broadly, the opportunity to spend funding on wraparound support for local businesses. That could be used to help upgrade infrastructure to make energy savings—the hon. Lady talked about the challenge of overheads. Lots of things in the plan for neighbourhoods could help. More broadly, for communities that are not in the plan, we have the community right to buy and high street rental auctions. My hon. Friend the Member for Stockton North (Chris McDonald) talked about the community right to buy. He seemed particularly excited about it, and we fought hard for it to be part of the Labour party manifesto at the last general election. Through the English devolution Bill, we will introduce that strong new right to buy for valued community assets such as empty shops, pubs, and community spaces. This will empower local people to bring community spaces back into community ownership, and end the blight of empty premises.

I thank the hon. Member for Reigate (Rebecca Paul) for securing this debate, and I join her and my hon. Friend the Member for Newcastle-under-Lyme (Adam Jogee) in listing a couple of great community pubs. In Hemel Hempstead, they include the best newcomer pub of the year, the Anchor in Bourne End, and 2025 pub of the year, the Three Blackbirds, which is always good for a Labour pub quiz—we like that. I have had the pleasure of holding surgeries at The Windmill in Chipperfield, without a pint in hand, I promise. The Green Dragon in Flauden, which I mentioned in my maiden speech, is a wonderful pub. I wanted to focus on the point that the Minister made about empty shops, because there is a great initiative in Hemel Hempstead, and a great place called the Hop Tap, which has opened up in what was our market square. Times have moved on, and that space is in some ways empty, but The Hop Tap has moved in at short notice and created a wonderful craft beer place. It is now looking to sell beer online, and from its store, for people to take away. Does my hon. Friend agree that that is an innovative way to ensure that, in the 21st century, we can have pubs that provide what the community needs, and that help tackle the issue of empty shops?

That is a great use. The high street is going to change, and the degree to which we can foment such change will be a defining feature of this Parliament. That change will not be a restoration of how things were 20 or 30 years ago; it will be about reimagining the space. Leisure will be a particularly good use of the space. They could be used by microbreweries, such as—I am going to do it now—the Bulls Well in Bulwell, just down the road from my constituency office. I vowed I wouldn’t, but I couldn’t resist. There will be other places used for leisure purposes more generally. I am very enthusiastic about boutique bingo; that can bring life to the high street as well. Now for a perfect segue: there is a real opportunity for right hon. and hon. colleagues here, or those watching online or reading this later, in high street rental auctions. They are a really good way of doing exactly what hon. Members suggest. We need new powers for local authorities to require landlords to rent out persistently vacant commercial units. The types of entities that we are talking about could fill those spaces, get their first toe on to the ladder, and develop their businesses.

On a point of order, Madam Deputy Speaker. I wonder whether you will be able to give us a flavour of the pubs in Romsey and Southampton North. We feel sure that that would add to the debate this evening.

I thank the hon. Member for his point of order, and it would of course be remiss of me not to mention the Grey Hound in Broughton, which was the Romsey and Southampton North pub of the year 2025.

That’s the spirit, Madam Deputy Speaker. Before I finish, colleagues have asked about support to reduce overheads, and it is worth noting that nearly half of pubs have a rateable value of under £15,000, which takes them out of rates entirely. My hon. Friend the Member for Truro and Falmouth (Jayne Kirkham) asked for a confirmation of rates, but I am afraid I cannot run ahead of the Chancellor, who will set the rates for 2026-27 at the forthcoming Budget in the autumn. For this year, there is a 40% relief, which I know is very welcome indeed. To conclude, we have seen the strength of feeling from colleagues this evening, and also had a wonderful insight into the variety of ways in which pubs touch our communities. There is a common theme, which is the huge social value in people from a community, who know their community, coming together to tackle challenges and add to that community. We should want as much of that as we can foster, and the Government are keen to support that. Question put and agreed to.

22:28:00