Author: Bob

This is a time of crisis for pubs, clubs, brewers and cider makers. The multiple fiscal events in held by Government in 2022 – including the September ‘Mini-Budget’, November’s Medium Term Economic Plan and the Autumn Budget Statement – failed to give the trade the stability and support it needed.

CAMRA has been warning the Government about costs for businesses spiraling at a point when consumers are facing their own cost-of-living pressures, and many can’t afford to visit the pub as often.

Now we need your help to ensure that the Chancellor understands that this is make or break for pubs, clubs, brewers and cider makers.

What YOU can do

Commenting on the Chancellor of the Exchequer’s mini Budget today, CAMRA Chairman Nik Antona said:

“The Chancellor’s announcement that the new rate of duty for draught beer and cider will go ahead from August 2023 is fantastic news for the great British local as the tax system will recognise that beer, cider and perry served in a pub or social club should be taxed at a lower rate to alcohol bought in the likes of supermarkets.

“Crucially, this new lower rate of tax for draught beer and cider will now apply to containers of 20 litres and over and bag in box products – and not the larger 40 litre containers originally planned for – meaning smaller breweries, cider producers and pubs can all benefit.”

“This groundbreaking policy should help pull consumption into pubs, clubs and taprooms helping to encourage pub-going and keeping our beloved locals viable, alive and thriving.

“We are also delighted to learn that the Treasury will consult on changes to the definition of cider for tax purposes. We will be making the case for all cider to contain at least 50% fresh fruit juice, to ensure that consumers are getting a high-quality product, and to create renewed demand for acres of orchards that are currently being wound down at detriment to our natural environment.

Speaking about the crisis of rising costs for the beer and pubs sector, Nik Antona added:

“The UK’s world-renowned pubs and breweries pulled out all the stops to survive the pandemic but thousands face not being able to make ends meet as bills and costs have soared.

“The Government’s energy price cap for businesses is very welcome but we believe the business energy support scheme should be extended for a 2-year period as quickly as possible to provide certainty for pubs and breweries.

“Ahead of the Chancellor’s first full Budget later in the year, CAMRA is continuing to call for changes to the business rates system to stop the unfair burden on pubs and for the Chancellor to cut VAT on food and drink for hospitality businesses as costs for pubs continue to skyrocket as customers tighten their belts.”

The government response to the consultation on alcohol duty reform contains details of a number of policy changes from the Autumn Budget 2021 announcement, including:

• The extension of draught relief to include kegs of 20 litres and above
• An 18-month transitional measure for wine duty
• Our plans for a technical consultation on the definition of cider for duty purposes
• Additional detail on the design of Small Producer Relief
• The planned increase in the duty rates for alcohol will be cancelled
• The reforms will be introduced on 1 August 2023