Cheers! Tax saving for 38,000 pubs as alcohol duty freeze takes effect

More than 38,000 pubs are set to benefit from six-month freeze to alcohol duty from today

  • The great British pub receives further boost from today as a six-month alcohol duty freeze to 1 August 2024 takes effect.
  • This tax saving will help support around 38,175 pubs to face rising costs.
  • Duty freeze comes in addition to £4.3 billion in business rates cuts and duty protection for pints sold in pubs.

Pubs and hospitality venues have received a tax saving today, 1 February 2024, as a six-month alcohol duty freeze takes effect.

British pubs are a significant part of the fabric of communities across the UK and a further freeze on alcohol duty will help to support the sector while the government continues to bring down inflation while driving growth and investment.

This will impact around 38,175 pubs across the country and was announced as part of a multi-billion support package by Chancellor Jeremy Hunt in his Autumn Statement which also included £4.3 billion business rates relief. 

Exchequer Secretary to the Treasury, Gareth Davies, said: “The great British pub remains a critical part of communities across the country, that’s why we’re helping to keep costs low by freezing alcohol duty, reducing business rates, and supporting on energy costs.

“Our decisive action has also helped to more than halve inflation last year, protecting pubs and other businesses from the higher costs they would have otherwise faced.

“And we need to stick to our plan, so we can deliver the long-term change our country needs to deliver a brighter future for Britain, and improve economic security and opportunity for everyone.”

The six-month duty freeze, from 1 February to 1 August 2024, follows the biggest reform of alcohol duties taking effect last August, where, for the first time in over 140 years the UK’s alcohol duty system simplified so the duty paid reflects the amount of alcohol in it.

These reforms cut duty on pints in pubs by up to 11p when sold in supermarkets. Not increasing alcohol duty in line with inflation has now saved a further 3p to the duty on a typical pint of beer, 2p to a pint of cider, 4p to a glass of whisky, or 18p to a bottle of wine.

Welcoming the decision by the Chancellor to freeze alcohol duty, Nuno Teles, Managing Director, Diageo Great Britain, said: “By freezing duty until August, HM Treasury has listened to the industry’s plea for support and decided to back our homegrown sector, that employs so many people across the UK, and we urge the Chancellor to continue to back pub-goers, hospitality owners and producers.

Andy Slee, Chief Executive of the Society of Independent Brewers (SIBA) said: “While trading has been tough for pubs and independent breweries, the government’s continued support is very welcome. The beer duty freeze for six months provides some certainty for brewers as the new alcohol duty system is embedded.

“As part of this, the government introduced Draught Relief allowing beer destined for the pub to have a lower rate – and already there are signs that this is working to support pubs.”

The duty freeze formed part of a multi-billion pound support package for the alcohol duty industry announced at the Autumn Statement.

Retail, Hospitality and Leisure business rates relief was extended for a fifth year to 2024-25. This means around 230,000 retail, hospitality and leisure properties will receive 75% relief, up to a cap of £110,000 per business, on their business rates bills from the 2024-25 tax year.

This is a tax cut worth nearly £2.4 billion and comes on top of one third of business properties being taken out of paying business rates completely thanks to other government reliefs.

The small business multiplier for business rates was also frozen for a fourth consecutive year, protecting over a million ratepayers from an inflation increase in their bills.

August 2023’s ‘historical’ alcohol duty reforms saved on taxes in three ways:

Firstly, on draught drinks in the pub for all draught products below 8.5% alcohol by volume (ABV) through increasing Draught Relief. This is part of this government’s Brexit Pubs Guarantee commitment for every pint in every pub to pay less duty than their supermarket equivalent.

Secondly, tax was cut on lots of popular drinks in shops like sparkling wines and ready-made drinks.

Finally, the new Small Producer Relief was announced to help small businesses and start-ups create new drinks, innovate and grow.

SAVE OUR PUBS!

Local pubs deliver invaluable socio-economic value, ministers must act to save them, says new report  

Government must give pubs which serve as the beating hearts of their communities greater support with tax rebates to safeguard the nation’s locals as vital social lifelines, a report from the think-tank Localis has urged.

In a report issued yesterday entitled ‘Inn-Valuable: unlocking the socio-economic potential of our nation’s pubs’, Localis also argued that a minister for pubs role be reinstated to join up help for the country’s pubs sector – which cumulatively supports 936,000 jobs, generates £28bn in GVA to the economy and delivers £15bn in tax revenues to the Exchequer annually.

According to polling undertaken by YouGov for the report, 75 percent of people felt the impact of pubs to community life to be positive. When asked if pubs are important in bringing people together, more than four-in-five (81 percent) of British adults agreed they are, with just 14 percent feeling that they are not.

Polling carried out for the report showed 68 percent of British adults felt that pubs help combat loneliness in their local area. Among pro-community activities supported by local pubs, nearly half (44%) of people were aware of pub events that bring the community together, a quarter (25%) knew of local pubs that supported charitable causes and 17 percent knew of local pubs that supported vulnerable people in their area.

The research identified from case studies taken pubs across the country some dominant themes on how the sector supports local people and communities, namely by:

  • combatting isolation
  • supporting local causes
  • reflecting local culture
  • bringing local business together
  • supporting community through generations.

Pollsters also found that among social uses of pubs in the last three months, more than half of the population (51%) had met a friend in one, while nearly two-in-five (37%) of people had visited the pub to meet up with family, a quarter (25%) had enjoyed Sunday lunch in one and 10% of the public had attended a pub-held birthday party in that timespan. In addition, six percent of the public had used pubs for dating purposes and 13% watched a sporting event.

A key recommendation of the report calls for the re-establishment of a Minister for Pubs post to co-ordinate a cross-government taskforce responsible for long-term strategy for the British pubs sector and to lead on help with tax and regulation, alongside an emergency fund for energy bill support.

The report authors also make the case for business rates rebates for those pubs which take on socially valuable roles such as foodbanks or in providing warm spaces for vulnerable people, with a call for a modest £4m cashpot to help 1,000 pubs to diversify at a cost of a mere £4,000 per pub.

Localis head of research, Joe Fyans, said: “Across Britain, pubs have consistently played a pivotal role in knitting communities together and promoting social cohesion.

“Pubs are the beating heart of many communities, playing multifaceted roles in local daily life. This is why the decline of pubs is cause for great concern. With each closure, both tangible and intangible voids are left behind.

“The lessons are clear: pubs, in all their forms and across all locations, remain integral to British social cohesion as hubs of activity, community, and social capital. This makes their presence all the more crucial as community safety nets and beacons of light, offering a lifeline hope for many people looking for a real sense of local belonging.”

Emma McClarkin, chief executive of the British Beer and Pub Association, said: ““The stories highlighted in this report truly are just a snapshot of the hugely positive impact pubs have in communities across the country every single day.

“There are few businesses that can say they add both social and economic value and pubs are delivering that value in neighbourhoods from Lanarkshire to Liskeard, and everywhere in between. Pubs provide solace to people in tough times and a place to celebrate in others and to lose them would have a serious impact on people’s lives.

“With closures continuing to rise and pubs under threat from further duty and business rates cost hikes we hope the Government will seriously consider the proposals put forward by this report so the foundations can be laid to help pubs continue to do this brilliant work in their communities long into the future.”

Becky Barnett who runs The Lamb Inn in Swadlincote, which features in the report, said: “We support our local community in a number of ways, including offering free food and drinks to people on Wednesday mornings. People can come into the pub, have a free hot meal, and in winter, sit by our log fire in comfy chairs, no questions asked.

“When times are tough, we want to be a place where people can come for help and local people have been incredibly grateful of us opening our doors at no cost. At the same time, we also face challenges with high energy bills and other rising costs so it’s a scary time for our business as well, we want to continue to provide a non-judgemental warm space for people but we’re facing our own difficulties as well.”

Pub is The Hub chief executive, John Longden, said: “Pubs and publicans are the heroes at the heart of community life that provide essential local services and activities that create social value.

“They are a lifeline for many rural areas providing vital local services and activities such as village stores, allotments and community cafes as well as offering a safe space to tackle the major societal issue of loneliness.

“Pub is The Hub now estimates 1,000 more pubs and local areas could benefit from services if they can be directly supported in the future to diversify.”

Cheers! Leith’s best bar none!

VICTORIA best
VICTORIA best

An initiative to promote best practices within pubs and clubs honoured no less than twenty-one Leith hostelries at an event held at the City Chambers last night. The Best Bar None Scheme has operated in Leith for the past two years, and last night’s awards were a showcase of best practice as well as a celebration of Leith’s top bars.

The awards are unique to the licensed trade and involve an accreditation process that sets minimum standards of operation for venues in consultation with the Scottish Business Crime Centre, while promoting the sharing of best practice to ensure high standards of safety.

It encourages the licensed trade to work in partnership with Lothian and Borders Police, the City of Edinburgh Council and Lothian and Borders Fire and Rescue Service, in order to make their premises safer, and reduce alcohol-related crime and irresponsible drinking.

At the ceremony, which is sponsored by Diageo, Heneiken and Molson Coors, 21 premises were presented with Gold, Silver or Bronze awards for their participation and contribution to the scheme.

The Victoria Bar in Leith Walk has been named “Top Bar”, while the Leith Beer Company on The Shore has won the “Top Pub” award.

Both of these venues will now be nominated to go forward for the National Awards.

Councillor Eric Milligan, Convener of the Licensing Board, said: “The  Best Bar None scheme has proved to be very popular and I’m delighted  that it has proved to be such a success in Leith. It allows licensed premises to provide the best service possible and  also reassures the public that they can enjoy a safe and happy night out and experience everything that the area has to offer.”

Lothian and Borders Police Licensing Inspector, Lynne Symington said: “When the public enjoy a night out within Leith they are entiled to do in a safe and secure surrounding. Managers have a responsibility to ensure to do all they can to deter criminal activity and that the terms of their licence are adhered to at all times. The Best Bar None scheme helps us recognise those premsies who work alongside police and other partner agencies to achieve best practice and help keep our communities safe when out socialising.”

The winning pubs and the award they received:

GOLD

Victoria 265 Leith Walk

Boda Bar 229 Leith Walk

Parlour 142 Duke Street

Bond No.9  84 Commercial Street   

Sofi’s Bar   63-65 Henderson Street

Leith Beer Company 58 Shore     

 SILVER

Links Tavern 7 Restalrig Road

Carriers Quarters  42 Bernard Street

Granary 32-34 Shore

Cruz 14 Shore

Teuchter’s Landing  1c Dock Place

Malmaison 1 Tower Place

Foot of the Walk  7a Duke Street

King’s Wark 36 Shore

Malt & Hops 45 Shore

Marksman 13 Duke Street

BRONZE

Middleton’s 69 Easter Road

Four in Hand 218 Easter Road

Central Bar 7-9 Leith Walk

Tamson’s 280 Easter Road

Tam O’Shanter 39 Great Junction Street