Licensees in Northwich and Winsford have given their verdict on the Government’s latest changes to alcohol tax.
The Treasury announced several new tax measures on December 19 to help pubs and small breweries survive despite tough economic conditions.
Measures include a six-month freeze on alcohol duty until August 2023; draught relief, meaning lower tax on alcohol sold in containers larger than 20 litres, which is intended to favour pub customers over supermarkets; and the introduction of ‘small producer relief,’ which means producers who make smaller volumes pay less tax than those who make more.
Exchequer secretary to the Treasury, James Cartlidge, said: “The alcohol sector is vital to our country’s social fabric and supports thousands of jobs.
“We have listened to pubs, breweries and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system taking effect from August."
The measures are welcomed across the hospitality sector, but whether they go far enough to give pubs the required boost is yet to be seen.
Kris Perrin, licensee of the Ring o’ Bells pub in Weaverham, said: “In the entire world, the UK pays more duty on a pint than any other country. For every pint sold, 51p goes to the Government in tax.
“Anything that can benefit publicans is an absolute winner, but I still don’t think they are doing enough to support pubs at the moment.
“Our biggest concern is the ongoing crisis with energy costs. That’s what is at the front of most landlord’s minds at the moment.”
Ernie Welch, owner of the Old Star in Winsford, said: “The draught relief works out at 3p a pint, and if I’m honest, I can’t see that pulling customers back from the supermarkets.
“I welcome it, obviously. But it’s the whole package that needs sorting. The breweries always put their prices up at the beginning of the year, and we’re all dreading it because of increased production costs, petrol, and everything else.
“It will just get swallowed up. As a freehouse, I’m in a better position than most to pass on any savings.
“I’m think of starting up my ‘Teatime is Special’ offer again where I knock 20p off the price of a pint between 4pm and 7pm."
Chris Birtwistle, co-owner of Hush Brewing Co. in Northwich, said: “It levels the playing field a bit for pubs.
“The most important part for us and other small craft producers is the draught relief.
“When it was set at 40 litres, it wasn’t targeted. The bigger producers were benefiting more than the smaller ones. Now it’s gone down to 20 litres, we can take advantage of it.
“The taper on what ‘small producers’ can put out does not affect us, because we aren’t producing anywhere near that amount.”
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