A freeze in alcohol duty is to be reversed under measures announced by new Chancellor of the Exchequer, Jeremy Hunt.
“Today’s emergency statement by the chancellor undoes many of the positive measures announced in the mini-budget only a few weeks ago, including a welcome freeze in alcohol duty from February next year,” said SIBA chair, Roy Allkin.
“Small independent brewers will now have to wait a further few weeks to understand what this means for them, as the shake-up of the overarching alcohol duty system is still expected to go ahead. Again, this is creating more uncertainty for small brewers who are facing an extremely challenging trading environment dominated by energy spikes, price increases, and a cost of living crisis.
“The Treasury also intends to conduct a review of energy support from next April, including incentivising energy efficiency. Small brewers previously called for support through grants to move to net zero and improve their energy efficiency through new technology, and we hope that the chancellor will consider this as part of his review.”
“The chancellor’s decision today to reverse the alcohol duty freeze is a huge blow to brewers and pubs,” said Emma McClarkin, chief executive of the British Beer and Pub Association.
“The freeze would have delivered a £300m saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiralling costs and keep the price of pint affordable for pub goers this winter.
She added: “The cost of doing business is completely out of control for pubs and brewers, and the failure to act today to reduce pressures on businesses will hit them extremely hard. Our sector needs stability to plan and be able to keep serving communities at a reasonable price, but instead has been subject to ongoing uncertainty for too long.
“Waiting until a February budget to ease these pressures will be too late. We need the chancellor to act before winter really starts to bite for our brewers, pubs, and the customers, and we lose them forever in communities across the UK.”
Tom Stainer, chief executive of the Campaign for Real Ale, said: “The UK’s pubs and breweries are facing crippling energy costs which are already forcing some businesses to shut up shop for the winter months to ride out unaffordable bills, or close down altogether.
“Pubs already under serious pressure now face further uncertainty about what support will be available with gas and electric bills beyond April next year. The prime minister had previously said that pubs would be one of the businesses that would get extra support beyond the six-month period. The chancellor must urgently confirm whether or not this is still the case.”
He added: “Scrapping the planned freeze on alcohol duty is disappointing, although it is useful to have confirmation that plans to change the alcohol duty system next summer — including a lower rate of duty on draught beer and cider to support pubs and pubgoing — are still going ahead.
“CAMRA are calling on the chancellor to use his next statement on 31st October to rethink the freeze on alcohol duty — as well as announcing desperately needed help in the form of cutting VAT for on-trade food and alcohol, and assistance with the burden of business rates. Otherwise, we risk the nation’s locals being forced to close their doors for good.”
