In this special PUBlic Affairs Round Up, the Campaigns team shares its report back on the Spring Budget, the final details on the Alcohol Duty Review, and what it means for consumers, pubs, clubs, brewers and cider makers.

Spring Budget

On 15 March, the chancellor delivered his Spring Budget, and it was mixed news for the licensed trade.

Against a backdrop of high inflation and energy costs, CAMRA members and concerned consumers had been busy lobbying their MPs by email about CAMRA’s three-point plan for the Budget:

– setting the draught duty rate at 20 per cent lower than the general level

– restoring energy bill support to pubs, clubs and brewers

– action to address the unfair burden of business rates, such as introducing a lower multiplier for pubs, social clubs and their supply chain based on the social and community value that they provide for communities .

Outcomes:

Beer and cider tax

The big Budget announcement for brewers and cider makers was an increase in the draught duty discount for beer and cider, which is coming into force with the new alcohol tax system in August. This will mean that draught duty will be 9.2 per cent lower than the general duty rate.

CAMRA campaigned for years for the draught duty rate to be introduced, to incentivise drinking in pubs and social clubs, and recognise the social and community value that you don’t get from buying alcohol in supermarkets.

Th chancellor also announced general duty rates would be frozen until August, when they are then due to rise with inflation. That’s good news in the interim, which might help minimise price increases at the bar for consumers.

Energy costs and business rates

Unfortunately, there was no additional support announced for energy costs, business rates or help in other areas such as a reduction in VAT.

Support with energy bills is due to end in April, so pub and brewers are facing imminent hikes in their costs. We believe pubs and social clubs will close because of this so, as consumers, we have to support them where we can at this make-or-break time for the licensed trade.

Business rate relief schemes currently in place in England are due to end in 2024, so the government needs to act soon. Pubs pay a grossly unfair portion of the total business rates bill, and proper reform is the only permanent fix to the issue. This will be a main focus for us when we launch our campaigning ahead of an expected autumn fiscal event. We are also calling on the devolved administrations to do the same in Northern Ireland, Scotland and Wales.

CAMRA’s response:

The second the chancellor stands up to speak, the Campaigns and Communications teams jump into action sharing updates on social media, formulating our reaction press release and coordinating bespoke responses to journalists.

Within moments of the chancellor wrapping up, we were also in touch with the Treasury, confirming the announcements and sharing our initial thoughts on the announcements.

You can read our official reaction here: https://camra.org.uk/press_release/11p-draught-duty-cut-welcome-but-lack-of-energy-bill-help-will-see-communities-lose-local-pubs-and-social-clubs/

You might also have picked up on the “joke” the chancellor made during the speech, about British ale being warm, but taxes being frozen – it might not surprise you to find out that we disagree with his characterisation, but we did take the opportunity to make light of the statement on social media, and take the chance to signpost to some our excellent introductory Learn and Discover content on beer dispense:

Tweet / Twitter

https://t.co/LzaUeFKll0

Alcohol Duty Review 

At the end of March the Treasury released the final details of the new alcohol duty system, due to come into force in August, which has been developed over the last few years through the Alcohol Duty Review.

If you want to read the full details and response to the last round of consultation, you can do that here: M5209_M5348_Alcohol_Duty_Review_consultation_response_FINAL.pdf (publishing.service.gov.uk)

Here are the key bits:

New draught duty rate for beer and cider

CAMRA has campaigned for many years to secure the draught duty rate, and following our successful campaigning to increase the scope of container sizes that the new rate will apply to (20L and above rather than 40L and above), we particularly welcome the confirmation that traditional gravity dispense will be captured within the new, lower, duty rate.

With the chancellor extending the differential between the general and draught duty rates to 9.2 per cent in the Budget, we now look forward to campaigning to further increase that differential to the benefit of pubs, social clubs, and consumers.

Small Producer Relief Scheme

Small brewers and cider makers will be pleased to see the details of the new Small Producer Relief Scheme, so they can start planning. Once implemented, this completes the transition from the Small Brewers’ Relief (SBR) scheme, and most importantly we’ve won some key concessions to ensure the smallest brewers will not lose levels of relief they had under SBR.

However, with stubbornly high inflation and the impending cliff-edge drop-off in energy bill support, small producers still need more help than ever to compete with the purchasing power and economies of scale enjoyed by the global producers that dominate the UK beer and cider market.

Small cider makers will also benefit from a progressive duty system for the first time ever, supporting them to grow and increase choice of artisanal ciders for consumers.

Takeaway beer

Unfortunately, the Treasury is still pushing ahead with plans to ban licensees from decanting beer from draught duty-paid containers for off sales – which in plain language means takeaway draught beer – whether in pints or takeaway containers (eg flagons).

Despite our formal representations and extensive engagement with the Treasury since it was first raised, a workable solution to allow pubs and social clubs to make incidental takeaway draught sales has not been found.

It’s good that specialist bottle shops will now be able to buy casks and kegs with the general duty rate paid on them to make takeaway sales, but most publicans – who the new duty rate is designed to benefit - won’t be able to afford or accommodate extra draught containers just to make takeaway sales.

This, if implemented, will equate to a stealth ban on takeaway pints and is extremely disappointing for licensees and consumers, and especially designated drivers that like to take away a pint or two to enjoy at home. We will continue to campaign for a workable solution.

Northern Ireland

Following the signing of the Windsor Framework, we are pleased to see confirmation that the reforms will apply to Northern Ireland, including the Small Producer Relief Scheme.

Northern Ireland has a growing independent small beer and cider scene, and those producers need to be supported in their quest to increase choice for consumers.

Finally, we want to say thank you to some people.

More than 3,000 people emailed their MPs, and we would like to thank everyone who took part. Although the result wasn’t what we wanted, it’s vital that we keep these issues in the inboxes of MPs, and other elected representatives throughout the UK.

Responding to government consultations is a vital behind-the-scenes action that’s so valuable to maintaining our reputation as a credible campaigning force, and nine branches also appear on the list of respondents to the last Treasury consultation as part of the Alcohol Duty Review: Birmingham; Bolton; Leeds; North London; Slough, Windsor and Maidenhead; Sunderland and South Tyneside; Tendring; West Kent; Wyre Forests

As we head into summer, we will be turning our attention to rallying everyone to support their pubs and social clubs wherever they can.

There are so many important social, cultural and sporting events to celebrate over the coming months, and every visit is an important part of supporting licensees, brewers and cider makers.

That’s all for this special edition of the PUBlic Affairs Round Up – we’ll be back later in the year to report on all our other lobbying work across the UK, and you can read our previous PUBlic Affairs Round Up (written before the Budget) here: https://wb.camra.org.uk/2023/01/26/public-affairs-round-up-january-2023

As always, if any CAMRA member wants campaigning advice, or has questions about what we are up to, the Campaigns team is here to help – just email campaigns@camra.org.uk   

Ellie Hudspith, Paul Edgeworth and Cam Weddell