More reaction to the Budget, Rachel Reeves’ first as Chancellor of the Exchequer, has been arriving at the Beer Today news desk.
“The Chancellor’s announcement that she will raise the draught duty discount was a positive step which shows a continued support for breweries and beer in pubs, which contribute greatly to local communities and economies,” said SIBA chief executive, Andy Slee.
“But with broader alcohol duty, business rates, wages, and national insurance contributions all going up, pubs and breweries are going to be worse off overall.
“SIBA also welcomes the government’s consultation on pub market access, which has the potential to improve the ability for small independent breweries to supply local pubs. We look forward to working with the government and our colleagues across the industry to ensure this has a positive outcome which will improve consumer choice.”
The Campaign for Pubs said pubs and other small businesses had hoped for a Budget that would deliver economic growth, something which is driven by small businesses, but instead costs are up and support is down. Publicans now face the stark choice of cutting staff hours and staff numbers, raising prices when customers are already feeling the pinch, or closing the doors altogether.
The slashing of business rates relief means a 140% increase for anyone with rates payable as the rateable values and multipliers have not been touched, only the relief. Given how over-rated many pubs are, this is likely to be an increase in the thousands for most pubs and tens of thousands for the largest pubs. The only really positive measure for pubs and the wider hospitality sector is a long overdue announcement of a reform of the unfair business rates system, but this won’t come into force until 2026-27, so is of no help to publicans and pubs in the current very difficult situation.
The campaign had written to the Chancellor expressing very serious concern on the potential impact on pubs of the rumoured rise in employers’ national insurance contributions, as well as a potential increase in the minimum/national living wage. However, this was ignored.
The campaign is critical that the government has fallen into the trap of its predecessor and listened to lobbyists of the giant brewers and large pubcos and not to the people who actually run pubs (and work very hard doing so). The cut in draught duty relief is worth tens of millions of pounds to big brewers and mass produced cider manufacturers. The duty cuts will hardly be felt by publicans, never mind customers, but will funnel millions to the huge corporates.
“Overall, this is a very disappointing budget for pubs that fails to understand how hard publicans are working to serve their communities and keep pubs running,” said Campaign for Pubs vice-chair Dawn Hopkins.
“Publicans are working people — very hard-working people often on less than minimum wage — and yet the government has failed to recognise that in our hour of need.”
BII licensee of the year, Justine Lorriman (pictured above), owner and free trader at The Royal Dyche, Burnley, said: “I feel the Chancellor’s quote ‘a penny off a pint’ is a compete insult to the hospitality industry. The sector has just been hit with so many increases, and seeing the House cheer when this was announced shows just how out of touch they are.
“As for the reduced business rate relief from 75% to 40%, this will cost many pubs thousands of pounds. The national minimum wage and NI increasing for employers was expected, but not on the scale that it has been increased to.
“It will be a waiting game now to see how much packaged and spirits increase from breweries and wholesalers with the duty increasing on non-draghtt products. Disappointing to say the least!”
Mark Williams, chief executive of Keystone Brewing Group, which includes Purity, Black Sheep, Brew By Numbers, and Brick breweries, said: “Today’s autumn Budget announcement unfortunately misses the mark for the brewing and pub sectors.
“Although we appreciate the small reduction in draught duty, this move falls short of the comprehensive support breweries and pubs need, especially with other alcohol duties rising by 2.7% alongside the ongoing pressures of rising costs, energy prices, and inflation.
“Adding to this strain, the increase in national minimum wage, higher national insurance contributions, and the reduced earnings threshold will cost the hospitality sector an estimated £1bn, forcing many businesses to raise prices for customers and cut back on supplier commitments.
“What’s truly needed is a community-focused tax approach that recognises the essential role pubs play as social and economic hubs. It’s also critical that any business rate reforms slated for 2026 are implemented meaningfully, with the brewing and pub sector currently receiving minimal relief from rates cut to 40%.
“Clear and predictable rates are essential to drive investment and support the high street without arbitrary caps, enabling sustainable growth.”
Nick Mackenzie, chief executive of Greene King, said: “Despite a glimmer of hope on the horizon for business rates reform in 2026, the layering of substantial costs on pubs next year is going to leave businesses with difficult choices around investment, prices, and hiring.
“The importance of the pub and brewing sector, which employs more than one million people and invests £2bn a year in communities across the UK, cannot be underestimated. While a reduction in draught duty is welcome, in reality it is a drop in the ocean compared with the cost impact of lowering the threshold for national insurance contributions and increasing the rate paid by employers.
“I would urge the Chancellor to work with the industry to help reduce the cost of doing business as a matter of urgency, with the possible changes to business rates for hospitality in 2026 needing to happen sooner to end the unfair taxation of the nation’s locals.”
Ed Fowler, commercial real estate partner at law firm Cripps, said: “Business rates have placed an excessive and unfair burden on the retail and hospitality sectors for many years, so the changes announced today are long overdue.
“In its latest manifesto, Labour openly acknowledged that the current system disincentivises investment and creates uncertainty, so the need for far-reaching change is clear. Today’s announcement addressed two significant points of concern for the sectors: an imbalanced business rates burden, and an impending cliff edge as pandemic-era business rate reliefs looked set to end.
“With business rates having the potential to quadruple with the end of reliefs in April 2025, the news that the 75% business rates relief scheme will be continued at a lower of 40% relief (capped at £110,000 per business), may provide some solace. However, concerns undoubtedly remain for many in the sector who will see their bills rise alongside a 1.2% increase to employers’ national insurance.”
He added: “With a longer-term view, the announcement of an overhaul to the current business rate system, in the form of two permanent, lower tax rates for retail, leisure, and hospitality businesses from 2026, comes as much sought-after change.
“It suggests that the Chancellor has listened to calls from those on the ground for a revised multiplier. However, the question is whether this reform will be adequate — and implemented with enough urgency — to alleviate the enormous pressure facing our high streets.”
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