The Chancellor announced the scrapping of the alcohol duty escalator, extension of reliefs for businesses, and efforts to deal with the cost of living in the measures in today’s Budget statement. It also signalled an increase in the personal allowance to £10,500, a doubling of the Annual Investment Allowance to £500,000, extension of Capital Allowances for three years, and an extension of allowances to support 100,000 more apprentices.
However, it did not produce the major changes to the business rates regime that oppresses so much of the hospitality sector, and which arguably would have had a more positive impact than any other change (apart from reducing VAT).
There has, of course, been no time for the early reactions quoted below to work out if or where the Chancellor is ‘giving with one hand, only to take back with the other’!
ALMR welcomes reliefs for licensed hospitality
The ALMR welcomed the budget statement and urged the Chancellor to continue to support the eating and drinking out sector in the in the UK, with ALMR Strategic Affairs Director, Kate Nicholls Commenting:
“We are pleased to see the Chancellor continuing the good work started last year and we welcome the scrapping of the alcohol duty escalator and a penny off a pint for the second consecutive year.
“The licensed hospitality sector provides a good indicator of the levels of recovery in the country and reducing tax burdens on consumers is good news for pubs, clubs and restaurants.
“Extension of apprenticeship grants for small businesses ensures that the eating and drinking out sector can continue to lead the way in apprenticeships. Likewise the doubling of investment allowance and extension of employment allowance gives pubs, clubs and restaurants a chance to continue doing what they are already doing, namely creating jobs and investing in people.
“It is also pleasing to see the Chancellor extending the capital allowance; this will allow licensed hospitality businesses to continue to improve in their infrastructure and permit the continued evolution of our high street offerings.”
SIBA delighted with ‘same again, George’
Julian Grocock, chief executive of the Society of Independent Brewers (SIBA) said, “SIBA applauds the Chancellor’s decision to take another penny off the pint, following last year’s historic decision to scrap the unpopular escalator. It is good to see that this government believes in providing long-term support for the British brewing and pubs industry.
“SIBA’s Budget submission to the Treasury this year was based on the very positive impact of the 2013 duty cut on the local brewing industry. Our members now feel more confident about the long-term prospects for their breweries, and are investing in them by buying new equipment, recruiting new staff or opening new pubs.”
BBPA: huge cheer for beer…
Commenting on the second, historic beer duty cut in the Budget, Brigid Simmonds, BBPA Chief Executive, said:
“This is fantastic news, and George Osborne is again the toast of Britain’s brewers, pubs and pubgoers. It will protect over 7,000 jobs over two years, mostly jobs of younger people in Britain’s pubs.
“It also shows that the Government has understood our case that taxes on British beer had become far too high, and action was long overdue.
“I hope this becomes a trend in future budgets for this British-made, lower-strength drink.”
Really positive news
Nigel Wright, chief operating officer of managed pub and bar group TCG, said:
“The Budget is really positive news for the trade. Another reduction in the rate of duty on beer, along with the freeze in cider duty, is particularly good news, especially in a World Cup year. A well-served pint at the pub is an essential accompaniment to meeting friends or watching the match for millions of consumers, and it’s important that it remains an affordable treat.
“The end of the duty escalator on wine and spirits is a welcome move, and all credit goes to the trade bodies that co-ordinated the campaign to persuade the Treasury of its merits. We’ve invested significantly in both our cocktail range and wine lists over the past year, supported by staff training, and an end to above inflation increases in duty means we can expect to continue to see the benefits in terms of increased sales.”