After cuts for three years in a row, the Chancellor of the Exchequer has, in his Budget statement today, decided to freeze duty on beer and cider.

CAMRAUnderstandably, those who had been campaigning for a fourth cut are disappointed, however there was a warmer reception for decision to cut stamp duty and business rates, which are seen as being pro-community pubs.

CAMRA chief executive, Tim Page, said: “A freeze in beer tax is an opportunity missed to back the continued revival of brewing in the UK. With UK drinkers paying the second highest rate of beer duty in Europe, a beer tax cut was needed to keep pubs open, boost the brewing sector and to keep the cost of a pint stable.

“However, the sustainability of smaller community pubs has been boosted by welcome decisions to cut commercial stamp duty and the business rates paid by small businesses. The extension of small business rate relief will save publicans of smaller pubs thousands of pounds annually, which will help keep community pubs as viable businesses and at the heart of community life.

“Likewise, cuts in commercial stamp duty will reduce the financial barriers faced by people looking to purchase small community pubs to keep them open and serving the needs of local people.”

BBPAFor the British Beer and Pub Association, chief executive, Brigid Simmonds, was more upbeat on duty. She said the duty freeze means that beer duty is now 17% lower than it would have been, had the Chancellor stuck with the escalator policy.

She added: “To achieve three cuts and a freeze from the Chancellor over four Budgets shows a real commitment and concern for both brewing, an important manufacturing industry, and our nation’s pubs. Beer is already 20p cheaper in pubs than it would have been under the escalator and the industry has the confidence to invest.

“Also, around 75% of pubs will benefit from the changes to business rates, with a pub on a rateable value of £50,000 saving £625 per year, from April 2017, and pubs with [rateable value] of less than £12,000 paying no business rates at all.

“However, we are still paying the second highest beer tax in the whole of Europe. Pubs are facing rises in costs in the coming months, from the living wage, the apprenticeship levy and auto-enrolement pensions. The Government has more to do to support pubs, but great to see Government acknowledge how vital they are to their local communities.”

BII logoAnthony Pender, chairman of the BII, said: “The BII, and all of our members, are grateful to the Chancellor for his decision. We are pleased that he recognises the hugely important role pubs, bars and restaurants play in our country and that our members, from business owners to individual employees who work in our industry, will benefit.

“With it being National Apprenticeship Week, we are sure this freeze on duty will help the drive to generate new jobs. This is especially so for young adults like Molly Casey and George Turnbull, both of whom have progressed to senior management positions post apprenticeship at The Lion, Earls Colne, which belongs to one of our members.

“We welcome any support the Government is willing to give our industry. Whilst times remain challenging, moves such as this will help our members to run successful businesses that are at the heart of their communities and vital to employment and career progression.”

Dougal Sharp, founder of Innis & Gunn brewery, said: “It’s good news that beer duty has been frozen in this budget. Most in the industry would have been hoping for a cut or at least a freeze. The fact that the duty isn’t going up with the rate of inflation is welcome news. We are supportive of all initiatives that benefit beer drinkers across the country.

“Amid the praise of the freeze, it should be said that the UK beer market has entered an era that is governed less by incremental shifts in price and more by the quality of product and the variety available to customers. The dawn of this era is perfectly exemplified by the continued success of craft beer pubs in the face of a general trend of weekly pub closures across the country.

“The British beer drinker is a lot more discerning about what beer they drink, and this is the reason why the craft beer movement has flourished over the last few years. We don’t expect this trend will be reversed.”

However, Bath Ales’ managing director, Roger Jones, said: “This Budget statement feels like lots of froth and not enough body. I’m not sure there’s much in this for the team at Bath Ales or our customers.

“Beer duty hasn’t increased, but it’s not enough. We’re still not on a level playing field with cider on duty. The freeze is not enough to benefit consumers and I think the Chancellor should be doing more to champion the British brewing industry.
“Freezes on fuel duty and cuts to corporation tax are small steps to help businesses like ours, though bigger steps are needed to support businesses that have lots of employees in very different roles.”