Pubs raise a glass to Hunt’s alcohol duty freeze and rates relief
The UK’s struggling pub sector has said it was “extremely pleased” with the news that alcohol duty will be frozen and business rates relief has been extended.
Chancellor Jeremy Hunt announced the measures as part of the Autumn Statement delivered this afternoon, in what he said was a budget for growth.
“As well as confirming our Brexit Pubs Guarantee, which means duty on a pint is always lower than in the shops, I have decided to freeze all alcohol duty until August 1st next year,” Hunt said. “That means no increase in duty on beer, cider, wine or spirits.”
Emma McClarkin, chief executive of the British Beer and Pub Association, said she “wholeheartedly” welcomed the duty freeze and decision to maintain a business rate relief.
“These policy decisions will save our sector around £350m,” she said.
She said this support was critical because the planned increase in the national living wage “will add over £240m to pub wage bills”.
“The chancellor has once again recognised the importance of our nation’s pubs and brewers to the economy and communities, and the importance of keeping a trip to the pub affordable,” she added.
Miles Beals, chief executive of the Wine and Spirit Trade Association, said: “The alcohol duty freeze comes as a huge relief to wine and spirit businesses and the hospitality sector who have taken a battering over the last few years.”
Alcohol duty was hiked in August, which brought an end to the blanket alcohol duty freeze which was put in place via the Autumn Budget 2020, and saw alcohol taxed by strength – a move that Beals said has led to a “worrying decline in sales”.
Hunt also announced plans to extend the 75 per cent business rates relief for another year for retail and hospitality groups as the Chancellor said he was “backing the high streets.”
According to the commercial real estate intelligence firm Altus Group, the freezing of the small business rates multiplier for another year coupled with the extension of the 75 per cent for occupied retail, will save the average pub £12,869 in business rates next April.
Sacha Lord, Night Time Economy Adviser for Greater Manchester, said that he was “extremely pleased” to see the support given to the hospitality sector in today’s Autumn Statement.
“An entire removal of the business rate relief would have left hospitality venues facing unsustainable average hikes of over £12,000 from April and would have created a shock to the sector that would have been difficult to stabilise,” Lord said.
“However, today’s move to freeze rates relief will give venues the time and breathing space needed to help them plan ahead effectively and ensure they remain in business to continue their important contribution to the UK economy,” he added.