Jeremy Hunt extends alcohol duty freeze in victory for thousands of struggling pubs

Sign up for the View from Westminster e-mail for professional evaluation straight to your inbox

Get our free View from Westminster e-mail

Jeremy Hunt introduced a freeze on alcohol duty in his spring Budget in a win for pubs struggling with the associated fee of dwelling squeeze.

The chancellor mentioned he was extending the freeze, benefitting 38,000 pubs throughout the UK, for an additional 12 months after preserving the duty unchanged in his Autumn Statement.

Traditionally, alcohol duty charges rise yearly in line with inflation however chancellors have, over the previous decade, opted to freeze it.

Mr Hunt informed the Commons: “In the Autumn Statement I froze alcohol duty until August of this year. Without any action today, it would have been due to rise by 3 per cent.”

He mentioned he had listened to representations from MPs concerning the tax, including: “So today I have decided to extend the alcohol duty freeze until February 2025.

“This benefits 38,000 pubs all across the UK – and on top of the £13,000 saving a typical pub will get from the 75 per cent business rates discount I announced in the autumn.

“We value our hospitality industry and we are backing the great British pub.”

Many pubs have struggled to get well from misplaced enterprise through the Covid pandemic and have been hammered by rising prices amid the associated fee of dwelling.

The rising value of a pint has put many punters off going out for a drink and thousands of pubs have been compelled to shut because of this.

Industry information printed earlier this 12 months confirmed thousands have been compelled to tug down the shutters, with greater than 10 pub or restaurant closures every single day.

The quantity of licensed premises in Britain fell by 3.6 per cent from 103,682 to 99,916 in the 12 months to September.

It marked the primary time the full has dropped under 100,000, in response to figures from AlixPartners and CGA/NielsenIQ printed in January.

Rising power payments, lease, and meals payments have additionally put enormous stress on the business.