PUBlic Affairs round up – Budget special
The chancellor delivered her Budget statement to the House of Commons on 26 November, but what did Rachel Reeves deliver for breweries and pubs, what did CAMRA ask for and what happens next? Let’s break it down.
What did CAMRA call on for pubs, pints and people?
It’s common knowledge that the pub sector has been hit hard this year.
Last year’s Budget delivered a double whammy of tax increases in April, including business rates support being cut and Employer National Insurance contributions rising. These have been crushing extra costs for publicans and brewers.
Pub businesses across the UK have been closing at an alarming rate, with 1,016 so far this year.
To recognise pubs as regulated community spaces that help tackle social isolation, improve wellbeing and stop people from drinking cheap supermarket alcohol at home, CAMRA asked the chancellor to:
- reduce VAT on food and alcohol served in pubs
- reverse or reform increased Employer National Insurance contributions
- make the energy market for businesses fairer to stop pubs and breweries being hit hard by huge bills
- introduce a fairer system of business rates for pubs in England so bricks-and-mortar businesses aren’t disadvantaged compared to online ones
- significantly cut alcohol duty on beer and cider served in pubs, clubs and taprooms.
The Campaign also asked the Treasury to scrap red tape that stops take-away pints from being sold by pubs and festivals and to change cider duty rules so that it must contain a minimum 50 per cent juice content, guaranteeing quality pint for drinkers.
How did CAMRA campaign?
More than 4,000 beer lovers and pubgoers used CAMRA’s e-lobby to ask their MP to back beer and pubs in the Budget, resulting in Parliamentary Questions being asked on its behalf for UK breweries, pubs and drinkers.
CAMRA chief executive Tom Stainer and the Campaigns and Communications team hosted an MP drop-in at Westminster to discuss the support the sector was in desperate need of in the Budget.
Not only did staff network with MPs, but also sent briefings to everyone who attended highlighting the key asks to help beer and pubs in the Budget.
What did the chancellor deliver for beer and pubs?
The government has said it will introduce permanently lower business rates for hospitality in England next year. The Treasury also said all pubs will pay a “lower tax rate” than they do now.
This sounds like a positive step, but there is a sting in the tail.
Pubs currently get 40 per cent rates relief, but this will end once the new, “lower” rates system is introduced. This means many licensees could be paying more than they do now. In addition, properties are being revalued for business rates.
Although tax rates will be lower, the revaluation and removal of the 40 per cent discount will see business rates bills being higher for most pubs, instead of lower as the government promised.
At a time when other costs are rising for pubs, this is disgraceful.
CAMRA will keep campaigning for a truly fairer business rates system so hospitality businesses can benefit from lower bills.
The chancellor is also increasing alcohol duties by inflation in February 2026. This includes increasing the special duty rate that brewers pay on draught beer and cider served in pubs, clubs and taprooms.
This rate should have seen a big cut to recognise the community benefits of pubs.
This would also help independent breweries which send a bigger proportion of their products to pubs compared to supermarkets.
Research shows making duty on draught beer and cider 50 per cent lower than the standard rate would create an additional 8,052 full-time equivalent jobs, contribute £265m to the economy, result in an additional £90m in wages and associated employment costs, and see an additional 76m pints sold in pubs with an increase of 2.7 per cent in draught beer sales volumes.
CAMRA will keep campaigning for the government to make the most of the ability to have a lower rate of duty on beer and cider served in pubs by drastically cutting duty for drinks in pubs.
What did the chancellor not deliver?
There was no mention of cutting VAT in the Budget statement. To help bring down the cost of pubgoing, the team will keep asking the Treasury to consider a cut in VAT for hospitality businesses.
Despite publicans’ pleas to lower Employer National Insurance contributions to reduce costs and help run a viable business with enough staff, no announcements were made.
The government is planning to look at manufacturers’ energy bills, but there are no plans to make the energy market fairer for pubs, clubs and breweries whose choices are limited, meaning they end up paying higher prices.
How did CAMRA respond?
The team tuned in live as the chancellor delivered her speech, responding in real time on X. Once the speech was over, the team poured over the official Budget documents as soon as they were published.
Once the team confirmed the finer details of everything announced, we released CAMRA’s official response and spent the rest of the day speaking to the press and media about what the chancellor’s announcements meant for pubs, pints and people.
The team also sent a Budget impact on beer and pubs briefing to MPs to help inform the five days of debate that takes place after the Budget in the House of Commons.
What’s next?
CAMRA will continue to campaign to make sure pubs, breweries and drinkers get a fairer deal on tax and financial issues by networking with ministers, civil servants and MPs from all political parties all year round.
The Scottish and Welsh governments’ Budgets will take place early next year so CAMRA will be campaigning for business rates relief to be extended for hospitality businesses, as well as a new fairer system to calculate rates.
The NI Executive’s Budget will take place later into next year so CAMRA will also be campaigning for fairer business rates for pubs in NI.
The NI minister for Communities recently rejected most of the recommendations made in the University of Stirling’s independent review of NI’s outdated alcohol licensing laws, which makes opening a new pub, micropub or taproom almost impossible.
CAMRA will keep fighting for fairer, modern laws to improve choice for NI drinkers.
The Campaign will also keep fighting for better planning protections for pubs, more support for communities to save their local from conversion or demolition, a fairer access to the market for independent breweries and cider makers, to stop the misleading dispense of “Fresh Ale” through handpulls in pubs, and better protections for drinkers.
Stay up to date with all our campaigning across Westminster, devolved parliaments and local government by reading our monthly PUBlic Affairs round-up series on What’s Brewing.
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