In advance of the Chancellor Philip Hammond’s Budget in a few days, amidst widespread belief across the consumer press that he will announce tax rises to meet a fresh round of spending commitments, the British Beer & Pub Association has issued a warning that any rise in beer tax would impact as a major setback for brewers and pubs.
Pubs across the country are already trying to deal with increased business rates, as well as implementation of the National Minimum Wage, auto-enrolment for pensions and the Apprenticeship Levy. All four are adding the equivalent of 5.3p tax on a pint, regardless of any possible beer duty increases.
Brigid Simmonds the BBPA’s Chief Executive, is also making a final push for a one penny duty cut, with a letter in the Daily Telegraph today. The letter is supported by nearly forty leading figures in the brewing industry, arguing the overwhelming case for a beer duty cut on Wednesday. In a Westminster Hall debate in Parliament on Tuesday further pressure will be applied by a cross-party coalition of MPs.
The leading economic research organisation Oxford Economics, reports there is no ‘pot of gold’ for the Chancellor in raising beer duty. Oxford Economics also estimates that 5,300 jobs would be lost if Mr Hammond raises duty as currently planned.
Speaking yesterday the Chancellor said that he would take a prudent approach to spending in Wednesday’s Budget to ensure that the UK has “enough in the tank” to manage the Brexit process of leaving the European Union.
However, and holding out some hope for pubs, Mr Hammond did intimate there could be a possible extra £300 million for those pubs and shops affected by rises in business rates.
We must wait patiently and see.