Yesterday, Government announced over 38,000 UK pubs and bars have seen a tax cut on the pints they pull as the historic alcohol duty changes took effect.
The duty paid on drinks on tap in pubs will be up to 11p lower than at the supermarket. The changes are designed to help pubs compete on a level playing field with supermarkets, so they can continue to thrive at the heart of communities across the UK. The Brexit Pubs Guarantee announced in the Chancellor’s Spring Budget secures the pledge that pubs will always pay less alcohol duty than supermarkets going forwards.
Taunton Deane MP Rebecca Pow said:
"Our pubs in our urban areas but especially in our in villages like Staple Fitzpaine, Hatch Beauchamp, Halse and many more besides, play a vital role, supporting not only the economy but our local community acting as key meeting places for many. So, I welcome the recently announced ‘Brexit Pubs Guarantee’ which pledges that the duty pubs and bars pay on these drinks will always be less than applied by retailers. This means that the duty paid on drinks on tap in pubs will be up to 11p lower than at the supermarket - designed to help them compete on a level playing field so that they can continue to thrive at the heart of our communities. The Government has taken advantage of Brexit to simplify the duty system which now also sees drinks taxed by strength for the first time and a new relief – named Small Producer Relief – to help small businesses and start-ups create new drinks, innovate and grow. We have many craft drinks businesses here and this should help them as well as cider makers, with a lower rate of duty now in effect on a range of different ciders. As a Parliamentary Cider Champion I am delighted that our cider industry is being heard, something I have worked hard on."
Further details of the changes can be found here: https://www.gov.uk/government/news/tax-cut-for-38000-british-pubs?