CAMRA: ‘Mini Budget’ alcohol duty announcements are a victory for pubs, small brewers and cider producers
Commenting on the Chancellor of the Exchequer’s mini Budget today, CAMRA Chairman Nik Antona said:
“The Chancellor’s announcement that the new rate of duty for draught beer and cider will go ahead from August 2023 is fantastic news for the great British local as the tax system will recognise that beer, cider and perry served in a pub or social club should be taxed at a lower rate to alcohol bought in the likes of supermarkets.
“Crucially, this new lower rate of tax for draught beer and cider will now apply to containers of 20 litres and over and bag in box products – and not the larger 40 litre containers originally planned for – meaning smaller breweries, cider producers and pubs can all benefit.”
“This groundbreaking policy should help pull consumption into pubs, clubs and taprooms helping to encourage pub-going and keeping our beloved locals viable, alive and thriving.
“We are also delighted to learn that the Treasury will consult on changes to the definition of cider for tax purposes. We will be making the case for all cider to contain at least 50% fresh fruit juice, to ensure that consumers are getting a high-quality product, and to create renewed demand for acres of orchards that are currently being wound down at detriment to our natural environment.
Speaking about the crisis of rising costs for the beer and pubs sector, Nik Antona added:
“The UK’s world-renowned pubs and breweries pulled out all the stops to survive the pandemic but thousands face not being able to make ends meet as bills and costs have soared.
“The Government’s energy price cap for businesses is very welcome but we believe the business energy support scheme should be extended for a 2-year period as quickly as possible to provide certainty for pubs and breweries.
“Ahead of the Chancellor’s first full Budget later in the year, CAMRA is continuing to call for changes to the business rates system to stop the unfair burden on pubs and for the Chancellor to cut VAT on food and drink for hospitality businesses as costs for pubs continue to skyrocket as customers tighten their belts.”