The Chancellor has frozen beer and cider duty in today’s Budget, but is to bring forward legislation to raise taxes on high-strength so-called white ciders.
The duty freeze follows a concerted campaign by various groups over the past few weeks, albeit with some seeking a cut in duty. British drinkers still quench their thirst with some of the highest taxed beer in Europe.
Addressing issues raised in the hospitality industry, the Chancellor said there would be a year’s extension of a scheme whereby those in pubs with a rateable value of less than £100,000 would get £1,000 of business rates relief. And he said that future rises in business rates would be pegged to the lower CPI measure of inflation, rather than RPI.
Mike Benner, chief executive of the Society of Independent Brewers (SIBA), said: “SIBA’s 850 brewery members will be delighted by the Chancellor’s announcement that he will freeze beer duty in this Budget, recognising the important role of the Great British pub. This is great news for brewers, pubs and consumers alike.
“We’d now like to see the Chancellor go further and commit to a freeze in beer duty across the entire Parliament.
“An extension by one more year of rate relief for pubs and a move to CPI from RPI is also welcome but more action is still required. Whilst news for our sector has been positive from the Chancellor, brewers and pubs still face a tough trading period ahead with uncertainty around Brexit, and worsening growth and productivity figures. For now, though, we will raise a glass of craft brewed British beer to the Chancellor.”
Brigid Simmonds, chief executive of the British Beer and Pub association, said: “The Chancellor’s decision to freeze beer duty and cancel his planned rise is an early Christmas present for beer drinkers and pub-goers worth £117 million this year and in subsequent years.
“It will secure over 3,000 jobs in pubs and the wider beer supply chain that would otherwise have been lost. This real-terms duty cut shows he has listened to our campaign and the concerns of pubs and pub-goers, and acknowledged the special role that beer and pubs play in the nation’s social life.”
She added: “With over 80% of the beer drunk in the UK brewed in the UK, he has understood the important capital investment made in the UK by our members. This is absolutely the right step towards a fairer deal for Britain’s beer drinkers and pub-goers and a vote of confidence in a very British manufacturing industry worth £23 billion to the UK economy. Beer drinkers will raise a glass to the Chancellor tonight!
“This extension of the pub-specific rate relief is also very welcome and continues to recognise the disproportionate rates burden faced by pubs. Moving from RPI increases to CPI two years earlier than planned from April 2018 is really welcome, as is the announcement on three yearly revaluations. It shows the government is listening to our concerns and this will save pubs £37 million this year alone.
“The announcement that revaluations will happen more frequently is good news, too, as high rates bills for pubs often lag behind the trading realities.”
