Business · Companies · 9 hrs ago

UK alcohol duty rise to push up pub pint and wine prices

UK alcohol duty rise to push up pub pint and wine prices

Chancellor John Healey’s Budget keeps a planned rise in alcohol duty for February, linked to retail price inflation.

The increase is expected to raise the tax on a pint, and industry analysis says the price paid by drinkers could rise by 3p; a bottle of wine could cost 18p more.

The exact duty increase differs between the accounts, with one giving 4.55% and another citing RPI inflation of 3.9%.

The Budget also raises the small-business rates relief threshold for hospitality businesses from £12,000 to £18,000 and provides £10 million in duty relief for about 2,000 smaller brewers and cider makers.

Small pubs and independent producers gain targeted support, while pub and beer groups say higher duty could make pints less affordable.

In England and Wales, tenants of tied pubs will also be allowed to serve a guest beer of their choice, which could give independent breweries more access to pub bars.

The duty rise is scheduled for February, while the announced relief measures are intended to support small hospitality businesses and producers.

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What people are saying

Miles BealeChief executive of the Wine and Spirit Trade Association
It’s a breath-taking hike.
via Mirror
Emma McClarkinChief executive of the British Beer and Pub Association
it will “undoubtedly push up the price of a pint”.
via Evening Standard
Ash Corbett-CollinsChairman of CAMRA
At a time when many pub-goers, pubs and brewers are struggling to make ends meet, increasing taxes on pints in pubs is the wrong decision.
via Evening Standard