Post budget hangover for pubs

Post budget hangover for pubs

CAMRA believes the government missed an opportunity in the Budget to show real support for pubs by not cutting the tax on draught beer and cider.

However, it raised a little cheer by confirming an 11-month freeze on excise duty rises.

CAMRA national chairman Nik Antona said: “Freezing alcohol duty until February 2025 will be welcomed by consumer and breweries, helping mitigate an additional hike in costs to be passed on to pubs and pub-goers.”

Nik said CAMRA wanted tax policy to promote the use of pubs and breweries.

“Making duty on draught beer and cider significantly lower would promote drinking in the regulated setting of a community local and help small and independent producers which sell mainly into pubs and taprooms to compete against the global brewing giants and the likes of supermarket alcohol,” said Nik.

He said CAMRA will continue to campaign for the Treasury and all political parties to back our sensible ask of making tax on pints in pubs 20 per cent lower than the general duty rate.

“Cutting VAT on all sales in the hospitality sector would have been a simple way to support consumers and beer and pub businesses in all parts of the UK – helping to keep the nation’s pubs, social clubs and breweries alive and thriving at the heart of communities and local economies.

“The chancellor should still consider cutting VAT for these businesses to ease the significant financial burdens on the sector and help to reduce the rate of pub and brewery closures which deprive consumers of community pubs and choice of local beers,” said Nik.

Hogs Back brewery MD Rupert Thompson called for help for pubs: “The extension of the alcohol duty freeze to February 2025 is very welcome. A pint of beer in the local should be an affordable treat, not an expensive luxury.

“We’re pleased that the chancellor acknowledged the enormous value of pubs to British society in his speech. Pubs provide the only route to market for draught beer, particularly cask ale. It’s something that they can uniquely offer to their customers, so are vital to us as a brewer.

“Without thriving pubs, cask’s future looks very bleak, which would be a tragedy for this uniquely British beer, the many drinkers who enjoy a pint of it in their local, and the thousands of people employed by breweries,” said Thompson.

SIBA chief executive Andy Slee wants the government to recognise the continued impact of Covid on the sector.

He said: “The government’s continued support for independent breweries and community pubs through an extended beer duty freeze is a welcome announcement that will help keep the price of a pint from rising. The National Insurance cuts will also put more money into people’s pockets which is essential for encouraging spending in pubs and hospitality.

“However nothing has been done to address the heavy Covid debt the sector still carries, and despite pubs and independent breweries being vital to local communities they have received no direct support in the Spring Budget – with a missed opportunity to increase the Draught Relief to 20 per cent or more which could have boosted our hospitality sector.

“Between them SIBA members run more than 2,000 pubs, bars and brewery taprooms, making a significant contribution to the local economy and community well-being. We are disappointed that nothing specific has been done to help alleviate the cost tsunami facing our much loved breweries and pubs in the months ahead.”

British Beer and Pub Association chief executive Emma McClarkin said the welcome duty freeze was not enough.

“It is good news that the chancellor was able to extend the freeze to beer duty at this Budget and will be welcomed by brewers, pubs and consumers alike and will go some way to keep the price of a pint affordable.

“However, this April brewers and pubs still face a £450m cliff edge of spiralling wage costs and business rates increases, particularly those pubs that are larger or food-led. It is disappointing that the chancellor did not choose to go further with a duty cut, reduce VAT or cap the increase to the business rates multiplier which would have helped mitigate the huge cost of doing business. 

“Pressures on our sector remain acute with margins being squeezed to the point where we fear it is likely that a further 500-600 pubs are likely to close this year on top of the 530 that closed in 2023. No government should turn a blind eye to the erosion of such an integral economic, social and cultural asset and it is vital that at the election the political parties commit to putting in place a fiscal and policy framework that will see our sector thrive for the long term and not continue to deteriorate.

BII CEO Steve Alton said: “The Spring Budget delivered no support for the independent pub businesses across the UK. The freeze on duty until February next year will not help pubs, which have been facing huge inflation in every area of their business, high energy costs, wage rises and reduced footfall from consumers facing their own cost of living crisis.

“Our members and the wider hospitality industry are in urgent need of meaningful investment to allow them to thrive as essential hubs of their communities, delivering vital social connection, all whilst supporting local employment and local supply chains. This Budget simply did not deliver to safeguard incredibly successful operators, who are struggling with profitability, whilst being unfairly and disproportionately taxed.”


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