Lancashire pub owners urge government to scrap alcohol rate rise
There are fears it could send the price of some alcohols soaring
There are calls for the government to reverse new changes to the way alcohol is taxed.
From today, alcohol duty will be simplified to a system whereby the amount of tax on a drink will be determined by its alcohol content.
It replaces the current Alcohol Duty system, which consists of four separate taxes covering beer, cider, spirits, and wine.
Government ministers claim it will make the system "fairer" and more "responsive to new products entering the market," but pub owners are warning it could mean a big hit to consumers.
That's because it comes into effect on the same day as a freeze on alcohol duty has been lifted.
Tony Callaghan, who owns a number of pubs in Wigan, said:
"It's disappointing that the alcohol freeze has been lifted. When you look into it, we have got an increase, for example, on vodka: 10%; on beer: 4%; cans of beer: 10%; sherry: 44%; the standard wine: 20%. So there are some big increases.
"It isn't good for the industry in the economic climate that we're living in; it's going to put yet another obstacle in the way.
"The government has tried to make the system a little simpler but yet again, it's a real concern for a lot of operators up and down the country.
"We've been hit massively with our energy costs, people haven't returned since COVID, and it's a very hard industry to work in.
"I think the government really, really needs to rethink for the hospitality sector and help us in any way they can.
"I don't think increasing duty is any help whatsoever. It's just yet another hindrance."
Matthew Rees owns The Flat Iron pub in Chorley town centre and told us it's another blow for the industry, on top of the COVID recovery and the cost of living crisis: "It's all resulting in pub traders being squeezed and squeezed. The price of pints will go up and trade will drop off so there needs to be some relief for licenced premises.
"At the minute it's one rise after another and you're wondering when is it going to end? Nothing ever goes down in price from our side. There will be a 10% increase on pretty much all spirits and all the packaged drinks in the fridge, it will unfortunately affect the customers going forward."
Meanwhile, the government has announced new measures today alongside the previously announced changes to alcohol duty, which they say will provide a boost to thousands of pubs.
They say the duty paid on drinks on tap in pubs will be "up to 11p lower than at the supermarket."
They say the changes are designed to help pubs compete on a level playing field with supermarkets.
It's been dubbed "The Brexit Pubs Guarantee".