Cambridgeshire pub owner urges 'fundamental help' for industry
Drinkers are being urged to visit pubs despite the end to an alcohol tax freeze
Last updated 2nd Aug 2023
A pub owner in Cambridgeshire says the industry needs “fundamental help” to help it survive.
Drinkers will face a jump in prices as an alcohol tax freeze ended yesterday and will increase by inflation at 10.1%.
The new system will tax all alcohol based on its strength rather than the previous categories of wine, beer, spirits and ciders.
Prime Minister Sunak described the overhaul as "the most radical simplification of alcohol duties for over 140 years", enabled by Britain's exit from the European Union.
Tony Summersgill runs the Little Downham Anchor with his wife Linda:
“Costs are increasing dramatically considering what we can charge the customer at the end of the day,” he said.
“We need some fundamental help.
“People have changed dramatically post-Covid to a point where we have got some fundamental loss of clientele and people are not coming to the locals like they were anymore.”
Wine duty jumps but draught beer tax drops
The increase will see duty rise by 44p on a bottle of wine, which when combined with VAT will mean consumers will pay an extra 53p, according to the Wine and Spirit Trade Association (WSTA).
Miles Beale, WSTA chief executive, said: "We are careering towards an extremely tough period for wine and spirit businesses with tax hikes and other costs.”
But the duty charged on draught pints across the UK will be cut by 11p.
However, the British Beer and Pub Association (BBPA) said brewers will pay 10.1% more tax on bottles and cans of beer, meaning tax will make up around 30% of the cost of a 500ml bottle.
Despite the draught freeze, the BBPA said the tax increase on packaged beer will add an extra £225 million of costs per year across the industry.
"I think we've got a bumpy ride coming forward"
Tony believes the industry could face a tough time to come unless more support is received.
“Long-term, I think we’ve got a bumpy ride over a few potholes coming forward,” he said.
“Unless people come and support their local businesses, it will end up being closure because it’s a diminishing industry.
“It needs a great deal of thought as to how we’re going to get out of this rut and get on a road to success.”