Beer duty will be frozen until August 2024 and business rates relief will be extended, the chancellor has announced in the Autumn Statement
The key points of the statement are:
- Alcohol duty will be frozen until 1st August, 2024
- The 75% discount on business rates up to £110,000 discount for retail hospitality and leisure businesses will be extended for another year
- The national insurance rate will be cut from 12% to 10% from 6th January
- Class 2 national insurance, paid by the self-employed, will be abolished
- The minimum wage will rise from April, to £11.44 per hour for those aged over 23
- The chancellor says it will take longer than anticipated for inflation to reach a 2% target
Chancellor Jeremy Hunt readily acknowledged the powerful campaign to protect the pubs we have left, from groups such as the Campaign for Pubs and the Federation of Small Businesses. It seems there have also been numerous interventions from fellow MPs.
Andy Slee, chief executive of SIBA, said: “After the double-digit increase in beer duty only months ago, independent breweries will heave a huge sigh of relief that duty is now frozen until next summer, allowing the new alcohol duty system time to bed in. The business rates discount being extended will also be welcome news for community pubs and taprooms, though a full reform of the system is still needed in the near future.
“However, there are a number of missed opportunities. Firstly, the decision to not extend draught duty relief, which could have provided a much-needed festive boost to our community pubs and independent breweries.
“Secondly, that there has been no announcement of support for small independent breweries seeking to meet the government-set net zero emissions targets. Breweries are increasingly conscious of their environmental impact and it is essential that targeted grants and subsidies are in place to encourage this.”
Nik Antona, chairman of CAMRA, said: “Extending the 75% discount on business rates bills for pubs in England for another year beyond next April is very much welcome — and much needed for pubs facing rising prices and the impact of the cost-of-living crisis.
“The chancellor admitted that temporary measures like this couldn’t go on forever, so it is vital that the government urgently reforms the grossly unfair business rates system, which penalises pubs and puts their future at risk.
“CAMRA is calling on the Scottish and Welsh governments to commit, now, to offering similar help for pubs with the burden of business rates. We’d also like to see the UK government find a way to help with business rates for the beer and pub sector in Northern Ireland if there continues to be no Executive ministers in post to do so.”
He added: “Freezing all alcohol duty until August 2024 is certainly to be welcomed. However, this is a missed opportunity to give targeted help to protect the nation’s pubs, social clubs, and taprooms by cutting tax on draught beer and cider served in pubs, instead of an across-the-board freeze in all alcohol duty.
“Reducing the tax burden specifically on pints in pubs must be extended in the future to keep pub-going affordable and to help keep pubs open and at the heart of both community life and local economies by giving them a fighting chance of competing against cheap supermarket alcohol.”
Emma McClarkin, chief executive of the British Beer & Pub Association, said: “The government today have backed British business by supporting Britain’s great pubs and brewers, the almost one million jobs across the country, and the beating heart of communities.
“We wholeheartedly welcome the chancellor’s decisions to freeze beer duty until August 2024, freeze the small business rates multiplier, and maintain a business rate relief of 75% both vital lifelines for the sector. These policy decisions will save our sector around £350 million.
“They will help deliver growth across cities, towns, and villages all over the UK, helping to level up the nation and underpin truly national growth in local economies at the heart of our communities. This investment in our sector is critical, particularly as National Living Wage increases — at more than double the rate of inflation — will add over £240m to pub wage bills at this challenging time.
“Britain’s publicans and brewers will be raising a glass to the chancellor tonight, who has once again recognised the importance of our nation’s pubs and brewers to the economy and communities, and we look forward to continuing to work closely with the government to unlock the UK’s further economic growth.”
Steve Alton, chief executive of the British Institute of Innkeeping, said: “We welcome the news that business rates relief for the retail, hospitality, and leisure sectors will be continued at 75% for 24/25, in line with our consistent calls on Government for ongoing support in this area. We also welcome the freeze on alcohol duty, not putting further pressure on top of embedded cost increases that our sector has been facing over the last few years.
“Today’s statement from the chancellor offers some much-needed support for many of our members, all of whom are facing the most challenging and critical times for their businesses. However, as small businesses at the heart of their communities, many run by independent operators, the rise in the national living wage to £11.44 per hour will hugely impact the profitability of their venues. Whilst we welcome measures that protect workers, there must be recognition of the impact this mandated increase will have on our small pub businesses.”
Nick Mackenzie, chief executive of Greene King, said: “The chancellor’s decision to freeze alcohol duty is a welcome lifeline for many pubs and breweries. The extension to the retail, leisure, and hospitality business rates relief scheme, and freezing the small business rates multiplier, are also both welcome and will help provide vital respite to our tenanted pubs who are struggling with high costs in other areas. However, these will offer little support to businesses like Greene King that manage and invest in pubs in communities.
“Pubs play a huge role in contributing to the nation’s growth and employ hundreds of thousands of people across the UK. We’ve invested heavily in our pubs and the long-term future of our sector, but at the same time we’ve seen the cost of doing business continue to rise.
“We continue to invest in our brilliant teams across the UK, but must recognise that the 10% rise in the National Living Wage will add extra pressure on pub operators across the country. We urge the chancellor to continue to explore ways to reduce the costs facing all pubs, so the sector can help unlock the growth he is seeking.”
James Daglish, commercial property and licensing partner at Keystone Law, said: “For hospitality and leisure operators, much of what they will take away as positives in the Autumn Statement will, no doubt, also be seen very much as the chancellor kicking the proverbial can down the road. Pushing things out until after the (widely expected) general election next year.
“The extension of the 75% discount on business rates up to £110,000, and the freeze on alcohol duty, both for another year, are clearly helpful. However, particularly in the case of business rates, the system is badly in need of reform, with some operators paying more in rates than they do in rent. Whilst grasping that nettle wasn’t expected, it has nevertheless been put off, once again, for another day.
“If the estimated economic growth figures come to pass, then trading conditions will likely remain challenging for the sector for at least the next 12 months.”
