Table of Contents
- Accusation Against Chancellor
- Details of the Tax Rise
- Industry Reaction
- Financial Impact
- Additional Taxes on Alcohol
PUB leaders yesterday criticized Chancellor Rachel Reeves for prioritizing billionaire Jeff Bezos over British pub owners.
She has eliminated business rates relief, resulting in a 63 percent tax increase on pubs.
Pub leaders have criticized Chancellor Rachel Reeves for prioritizing billionaire Jeff Bezos over British pub ownersCredit: Alamy
Online businesses like Bezos’ Amazon face only a seven percent tax increaseCredit: AP
However, online companies, such as Amazon, will only see a seven percent tax increase.
Braden Saunders, Co-Founder of Doghouse Distillery in Battersea, stated: “Our international competitors are observing how British spirits are becoming less competitive with each tax increase, undermining decades of effort to establish the UK as a global spirits leader.
“Someone needs to clarify that you cannot tax your way to prosperity by destroying the businesses that genuinely create jobs and stimulate growth.”
Emma McClarkin, CEO of the British Beer and Pub Association, remarked: “Despite all the discussions about supporting pubs, once the sector finally looked beyond the smoke and mirrors, we realized we had been sentenced to higher expenses.
“This Budget promised to make online giants contribute more, but the reality is that these minimal increases won’t significantly impact their vast profits.
“Instead, our cherished pubs will have to cover the costs, which will inevitably lead to more pub closures, job losses, and communities left with another boarded-up local establishment.”
This news coincides with new statistics indicating that Treasury alcohol revenue will be £3.9 billion lower in 2029/30 than initially projected following the 10.1 percent duty increase implemented 18 months ago.
Earlier this week, the Chancellor also opted to raise duties by 3.66%, in alignment with inflation – a move that will also increase prices in pubs.
The Wine and Spirit Trade Association (WSTA) indicated that a 3.66% increase would result in an additional 11p on a bottle of Prosecco, 13p on a bottle of red wine, and 38p on a bottle of gin starting February 1.
This also adds 2p of tax to the price of a pint, and pubs are under pressure to pass this cost onto consumers.
Reeves has eliminated business rates relief, resulting in a 63 percent tax increase on pubsCredit: Getty
Frequently Asked Questions
What is the recent tax change affecting pubs?
A 63 percent tax increase has been imposed on pubs following the elimination of business rates relief.
How does this tax increase compare to online companies?
Online companies like Amazon will only see a seven percent tax increase, which is significantly lower than the increase faced by pubs.
What impact will these changes have on local pubs?
The increased tax burden is expected to lead to more pub closures, job losses, and the decline of local community hubs.
Eze Chidiebere Paul
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