Independent brewers and pub consumers have called for chancellor Jeremy Hunt to increase draught relief to 20% in the forthcoming Budget.
The call comes from the Society of Independent Brewers (SIBA), the Independent Family Brewers of Britain (IFBB), and the Campaign for Real Ale (CAMRA). They argue that the move would provide the adrenaline shot the pubs and brewery sector needs to succeed.
The groups are also calling for the chancellor to increase the lower rate of duty for draught beer from its current 9.2%, while at the same time freezing the rest of the alcohol duty levels.
In the Autumn Statement last November, the chancellor chose to freeze beer duty until August, to allow the new alcohol duty system, introduced in 2023, to bed in.
A key part of the new system is draught relief, which allows the Treasury to charge a lower duty rate on beer and certain other alcoholic products sold in draught in pubs.
The groups believe that a more substantial cut of 20% on draught beer would encourage people to support their local community pubs and drink in the supervised environment, instead of at home. It would also help to secure jobs and businesses in the pub and beer sector.
“Pubs and breweries already pay way over their fair share of tax, and this is the chancellor’s opportunity to give the sector a boost in his Budget in March,” said Andy Slee, chief executive of SIBA.
“Increasing the draught relief would mark a major milestone, coming one year after the new alcohol duty system went live, which gave the chancellor the unprecedented power to charge a lower rate of duty on draught beer.”
CAMRA chairman Nik Antona added: “The support of pub-goers and beer consumers was key to getting draught relief introduced last year, which enables the chancellor to favour our cherished pubs and independent breweries in the tax system.”
And chair of the IFBB, Rick Bailey, noted: “At a time when the sector is still recovering from the pandemic and trading conditions continue to remain challenging, increasing draught relief to 20% would be a welcome development for pubs this summer.”
