Norfolk spirit-maker says they're raising prices to cover higher alcohol taxes
The changes mean alcohol will now be taxed based on it's strength
A spirit-maker in Norfolk tells us they're raising their prices, to cover the cost of increased alcohol taxes.
The duty on wines and spirits have increased, in what's being called “biggest single alcohol duty increase in almost 50 years”.
The changes mean alcohol will now be taxed based on its strength.
A bottle of wine has now gone up by around 53p and vodka or gin has increased by about 90p, when VAT is factored in.
Conversely, the levy on a draught pint from the pub has been slashed by 11p.
The government says it's a move that's designed to create a more level-playing field between hospitality and supermarkets.
"We would certainly like the Government to re-visit this decision"
Sarah Saunders owns Black Shuck distillery, in Fakenham.
She says there's little fairness in this:
"The spirits that are over 37.5% are paying so much more percentage than the ciders, for example. If you drink a pint of cider, the customer is paying about 19p of duty for that pint. Compare that to a gin & tonic and the amount of duty you are paying is about 65p.
"We would certainly like the Government to re-visit this decision. The timing of all this is awful. We'd also like them to look at things like VAT, there are other ways in which they can help small businesses. The thing as well is that it affects the whole supply chain from retailer to the hospitality outlet. We all need a little bit of help."
"We hope that our customers stay loyal"
"We hope that our customers stay loyal, understand our dilemma and appreciate the situation we are in. We are feeling hopeful as we have been having a good year. Our turnover is about 33% up on last year.
"So many small businesses are fighting for their lives. We know many people who have had to use their savings to keep their businesses afloat- and just haven't made a profit. They cannot do that indefinitely. Our high-streets will look very different if things don't carry on."
"Reflecting the popularity of low alcohol drinks"
The Treasury has said that more than 38,000 UK pubs will benefit from this tax relief.
The Chancellor Jeremy Hunt says: "British pubs are the beating heart of our communities and as they face rising costs, we're doing all we can to help them out. Through our Brexit Pubs Guarantee, we're protecting the price of a pint.
"The changes we're making to the way we tax alcohol catapults us into the 21st century, reflecting the popularity of low alcohol drinks and boosting growth in the sector by supporting small producers financially."