Chancellor Jeremy Hunt‘s Budget will have been welcomed by publicans today as he announced measures to help the great British pub. He said it was a “Brexit pubs guarantee” with draught relief being up to 11p lower than the relief for supermarkets.
Jeremy Hunt said he would “significantly increase the generosity of draught relief”, saying this could not be done when the UK was in the EU.
Drinkers will see tax on other alcohol soar by 10.1 percent in August in line with inflation after a freeze during the peak of the cost-of-living crisis, the Chancellor set out a separate rule which will see the duty on draught pints in pubs drop to up to 11p lower than in supermarkets.
Announcing his Budget in the House of Commons, Mr Hunt said: “My penultimate cost-of-living measure concerns one of our other most treasured community institutions, the great British pub.
“In December, I extended the alcohol duty freeze until August 1, after which duties will go up in line with inflation in the usual way.”
He added: “But today, I will do something that was not possible when we were in the EU and significantly increase the generosity of Draught Relief so that from August 1 the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.
“Madam Deputy Speaker, British ale may be warm, but the duty on a pint is frozen.
“And even better, thanks to the Windsor Framework negotiated by my right honourable friend the Prime Minister, that change will now also apply to every pub in Northern Ireland.”
Immediately prior to the Budget announcement, the British Beer and Pub Association (BBPA) said UK beer duty was 12% higher than Germany’s and £1 in every £3 was paid to Treasury in tax.
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CAMRA’s campaign manager Paul Edgeworth tweeted his support, saying “Good news in #Budget2023 that from August tax on draught beer and cider in pubs, taprooms and social clubs will be 11p lower than the duty in supermarkets.
“This will help to incentivise pub going and has been a key CAMRA campaign.”
Reinforcing this message, the Campaign for Real Ale’s main Twitter account posted: “The Chancellor announces an increase in the draught duty discount, which comes into force in August – he says it will be 11p lower than general duty and that the Government will maintain that differential.”
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