Liverpool pub owner reacts to alcohol tax changes

It's feared the price of some drinks could soar

Author: Stan TomkinsonPublished 1st Aug 2023

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 customers.

It comes into effect on the same day as a freeze on alcohol duty has been lifted.

Drinks on draught are amongst those which will see price rises

Iain Hoskins owns Ma Pub Group, which run a number of Liverpool bars including Ma Boyle's, he said:

"I don't think pricing by strength is going to make a huge amount of difference.

"Pricing by that is really nibbling around the edges and I think probably what we will see is a lot of producers lowering the ABV strength to get beyond that threshold.

“We have to acknowledge that the industry is in crisis because there are so many borderline businesses in hospitality where there is just a hope that things will get better.

"We noticed it last year, as soon as the cost of living crisis started to bite everything just tanked, even Christmas."

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".

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