The Government's Brexit Pub Guarantee comes into effect today, backing British pubs.
With this guarantee, over 5,150 pubs and bars here in the South East will benefit from a lower duty paid on a pint - up to 11p cheaper compared to supermarkets. This is due to the Government expanding Draught Relief, which effectively freezes or cuts the alcohol duty on the vast majority of these drinks. This is to protect our pubs, who are often undercut by supermarket competitors.
It means that the duty they pay on each drink poured from draught, such as pints of beer and cider, will be up to 11p cheaper than in supermarkets. The government has pledged that the duty pubs and bars pay on these drinks will always be less than retailers, known as the Brexit Pubs Guarantee.
This tax reduction is part of a wider shake up of the alcohol duty system which also comes into effect from today - the biggest in 140 years.
Commenting, Jeremy Hunt MP, Chancellor of the Exchequer, said:
“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.”
Simplifying the duty system is only possible thanks to our departure from the EU and the guarantees set out in the Windsor Framework. The previous system was convoluted, and the Government has brought about common-sense reforms in order to support wider UK tax and public health objectives.
Barry Watts, Head of Policy and Public Affairs, Society of Independent Brewers, said:
“These are the most significant changes to the alcohol duty system for generations which will have far reaching implications for what we order in the pub and what appears on the shop shelves. It is the culmination of five years of consultation on the future of Small Breweries’ Relief – a scheme that has made the huge growth of craft breweries possible over the past twenty years.
"These changes will finally address the “cliff edge” which was a barrier to small breweries growing and build on the scheme’s success by applying it to other alcoholic products below 8.5%.
“A key part of the new system is the draught duty relief is a gamechanger for the sector and allows for the first time a different duty to be paid for what is sold to our pubs. This will hopefully over time encourage more people to support their pub which is at the heart of our local communities.”
Pictured, Councillor Mark Gordon at the Kings Arms in Bagshot
