George Osborne’s Budget announcements of a further one penny cut in beer duty, two per cent cuts for cider and whisky, and duty frozen for wine has delighted much of the hospitality sector – lead by brewers pubs and beer drinkers.
Whilst celebrating the actions on duty, many also pointed to the positive effect of scrapping NI contributions for apprentices (see Keith Knowles, below).
Brigid Simmonds, Chief Executive of the British Beer & Pub Association
“The Chancellor really is a ‘Hat Trick Hero’. His third, successive beer tax cut shows he has listened to consumers, publicans and brewers. Beer tax is now ten pence lower than it would have been under the beer duty escalator, which he abolished.
“It will boost employment by 3,800 this year alone and attract new capital investment. It will put 180 million pounds in the pockets of beer drinkers and pub goers. That is a huge difference.
“Cutting beer duty supports a great British Industry which contributes £22 billion to GDP and supports almost 900,000 jobs. It’s also a boost for pubs, as beer accounts for seven out every ten alcohol drinks sold in our pubs. The renewed confidence in our sector is reflected in rising beer sales in 2014, for the first time in a decade.”
Tim Hulm, CEO, British Institute of Innkeeping
“The BII welcome a third successive beer tax cut by the Chancellor and the positive impact this will have on the thousands of BII members across the country… Importantly, the measures combined with the abolition of NI contributions for apprentices will further boost industry’s confidence in investing in its workforce.
“There is much work to be done though, particularly in supporting young people into a sector where more than half of the workforce is younger than 30.”
Kate Nicholls, CEO, ALMR
“Today’s measures will undoubtedly benefit licensed hospitality businesses, giving our customers more money to spend and our businesses more to invest. Combined with continued action on alcohol duty our trade has the tools at its disposable to make the best of increased confidence and spending.
“It is especially welcome that the Chancellor has recognised the importance of support for business employing Apprentices, with confirmation that they will no longer by liable to National Insurance from 2016. The cost of this jobs tax is a major burden on employees and employers alike. It is also extremely heartening that the Investment Allowance will not fall to the incredibly low level of £25,000 as originally planned.
“We were also encouraged by the Chancellor’s stance on business rates and look forward to engaging fully with the review in order to ensure a fair outcome for licensed hospitality businesses.”
Martin Thatcher, Chair of the National Association of Cider Makers
“We are delighted that the Chancellor has decided to support the British cider industry by cutting duty in his Budget Statement. This is a very welcome decision and proves the Government understands the huge importance of our industry to rural communities.
“This important decision will be celebrated by cider makers up and down the country as it protects the investment they have made over many years to grow the industry and support thousands of jobs.”
Tim Page, CAMRA Chief Executive
“CAMRA is delighted with today’s hat-trick of an unprecedented third consecutive cut in beer tax, with another penny of a pint, which will be welcomed by millions of beer-drinkers across the country. The last two cuts have already had a huge impact, saving over 1,000 pubs from closure and keeping the price of a pub pint down. Independent research by CEBR forecasts that the price of a pub pint will now be more than 20p cheaper than it would have been had the beer duty escalator remained in place.
“A third cut in beer tax is a huge vote of confidence in the importance of pubs and brewing. It will help ensure the sector returns to long term growth after many years of pub closures and falling beer sales, caused in part by a 42% beer tax increase between 2008 and 2012, and throw a lifeline to struggling community pubs across the country.”
Keith Knowles, Chairman of Perceptions Pub & Bar Careers Group
“The scrapping of NI contributions for apprentices will help to further encourage the industry to assist the government in reducing the level of unemployment amongst young 16-24 yr olds, which today stands at over 743,000.
“Thousands of apprenticeships were recently pledged throughout Apprenticeship Week from companies including Spirit Pub Company, TGI Fridays, Mitchells & Butlers, Stonegate Pub Company, Greene King, Fullers and Young’s and my own international business Beds & Bars, demonstrating the huge opportunity that exists within pub and bars across the country.
“This move will enable many more companies, including the smaller multiple operators and independents to really get behind this scheme which brings young people into valuable long-term careers. I encourage companies to pass the savings on and invest them back into apprenticeships pay.”