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Ongoing financial support welcome – but Budget is missed opportunity to lower beer duty to save our pubs: CAMRA

Release date: March 03, 2021
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Responding to the Chancellor’s Budget statement, CAMRA’s National Chairman Nik Antona said: 

“Freezing alcohol duty is obviously better than a rise. However, CAMRA had hoped to see the Chancellor announce a cut in duty on beer served on tap in pubs and social clubs to benefit consumers and help the great British pub recover and thrive in the difficult months and years ahead by being able to compete with supermarket alcohol. 

“The Government’s commitment to review alcohol duties in the coming months is welcome. CAMRA will continue to call for a lower rate of duty for beer served in pubs – an option available to the Government now we have left the European Union. 

“Reducing tax on beer served in pubs and social clubs would encourage responsible drinking in a supervised, community setting – as well as boosting jobs and local economies, helping consumers and benefiting pubs and licensees.” 

On financial support announced, Nik commented: 

“Cutting VAT as pubs begin to reopen, and reducing it until April next year, means they can now start benefiting from that cut - but CAMRA believes this VAT cut should be extended to alcohol so that traditional locals that don’t serve food can benefit too. 

“The extension of furlough until September and new grants of up to £18,000 are very welcome. However, pubs are unlikely to be able to fully reopen at pre-COVID trading levels due to outside space and then table service only indoors restrictions. The beer and pubs sector will need further support over the coming months, over and above new loans, to help them get back on their feet until there is a full and proper re-opening and they can trade at full capacity. 

“Extending the business rates holiday until the end of June will help keep the wolves from the door for many English pubs, with the two-thirds reduction for the rest of the financial year a welcome step. However, given how tough it will be for many pubs we believe the 100% cut in business rates needs to be extended for a full 12 months as has already happened in Scotland.” 
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