Hunt announces 'British ale is warm but the duty on a pint is frozen'

The Chancellor stated from 1 August this year, the duty on draught products in pubs would be up to 11p lower than the duty in supermarkets.

However, British Beer & Pub Association chief executive Emma McClarkin said while the alcohol duty reform is positive, the industry faces an “overall tax hike” in August with alcohol duty still set to rise in line with inflation.

She added: “Duty on non-draught beer will rise and the measures introduced today won’t rebalance the catastrophic impact soaring inflation and unfair energy contracts are having on both pubs and the breweries that supply them.

“The Chancellor highlighted how our pubs are the most treasured community institution, and we appreciate his efforts to provide some relief, but a lack of immediate support in today’s Budget will still put the future of many of them at risk.”

Duty on a pint frozen 

Speaking this afternoon, Hunt explained the increased draught duty relief was part of the Governments new “Brexit Pubs Guarantee” and was “a differential a Conservative Government will maintain”.

He said: “In December I extended the alcohol duty freeze until 1 August, after which the duty would rise in line with inflation in the usual way.

"But today, I will do something that was not possible when we were in the EU and significantly increase the generosity of draught relief so that from 1 August the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets.

“British ale is warm but the duty on a pint is frozen. Even better, thanks to the Windsor framework, negotiated by my right honourable friend the Prime Minster, that change will now apply to every pub in Northern Ireland.”

The Chancellor added the Government was focused on "sustainable and healthy" long-term economic growth and would not "hesitant to take whatever steps are necessary for economic stability".

Ongoing support 

Night-Time Economy Adviser for Greater Manchester Sacha Lord explained while the announcement on beer duty will enable operators to become more competitive against supermarkets and retailers, the overall situation as a whole for the sector remained “dire”.

Lord added: "In the face of rising bills, business rates and inflation, operators urgently need ongoing support and the Chancellor's announcements, or lack of them, will only further frustrate and anger the industry."

Additionally, UKHospitality chief executive Kate Nicholls shared on Twitter it was "vital" brewers pass the relief onto pubs to ensure it "delivers against government objectives".

Duty is a tax on and paid by brewers so really vital that they pass this on to pubs to ensure it delivers against government objectives

— Kate Nicholls OBE (@UKHospKate) March 15, 2023

This comes as trade bodies and associations from across the industry warned beer, wine and spirits prices could have faced some of the biggest price hikes ​in almost 50 years if the Chancellor had "failed to act" on alcohol duty.

Additionally, the Night-Time Industries Association (NTIA) stated the recovery of the late-night sector was "heavily reliant"​ on today's Budget.