The previous Government introduced a new duty system in 2023 which was the biggest reform of duties for more than 140 years and was based on common sense principles of applying duty based on the strength of alcohol to simplify the duty system for businesses and meet public health objectives. The reforms were welcomed by the British Beer and Pub Association at the time and the previous Government also froze alcohol duty at Autumn Statement 2023 and Spring Budget 2024.
The current Government increased the headline rate of alcohol duty by the retail price index though did keep in place the previous Government’s policy with a reduction in rates for qualifying draught products and small producer relief. However, the changes to draught relief were paltry with beer duty on an average 4.5 per cent pint going from 54 pence to just 53 pence which has driven up the price of the average pint to well over £5 to compensate.
£1 in every £3 spent in a pub goes straight to the Treasury and beer duty rates are now up to 12x higher than other European nations. This Government’s fiscal policies risk squeezing the life out of British pubs. The National Insurance hike, minimum wage rise, and the increase to business rates had led to a third of venues now running at a loss. The Government must change course or we risk losing our Great British institution and heartbeat of our communities - the local pub.
