UKHospitality urges Government to enhance duty reforms


UKHospitality has responded to the Governments alcohol duty review and is urging it to go further and faster in its reforms to the alcohol duty system that were announced at the last budget, particularly when it comes to draught beer and cider.   Currently, the discount will only apply to products in 40-litre plus containers and UK Hospitality is also asking for it to be expanded to include containers of 20-litres plus.

They are calling on levels of relief to increase to at least 20% and for the duty review to apply to more products and to be brought forward to this autumn.

They are also proposing that the Government looks at a reduced rate of duty for other products and package types sold through hospitality businesses, and for the administrative burden of complying with the excise duty to be further streamlined.

UKHospitality Chief Executive, Kate Nicholls said, “We very much welcome the alcohol duty review. Streamlining the system is a positive measure, underpinned by rational thinking and we particularly applaud the introduction of a reduced rate of duty for draught beer and cider, products sold almost exclusively through hospitality venues.

“In the face of the cost-of-living crisis, it will be important for operators to keep the price of drinks for consumers as low as possible, particularly as operational costs continue to soar and, come this April, the industry will be hit with a triple whammy of increased VAT, business rates, and labour costs. This will inevitably result in price rises across the sector and prove particularly damaging to pubs, restaurants and hotels that rely heavily on drinks sales.

“As well as this alcohol duty reform to help support the sector, we are also urging the Government to keep the current lower rate of 12.5% VAT for the sector permanently for food, non-alcoholic drinks, entry fees, and accommodation.”

Category: Beer, News
Tags: alcohol duty review, Kate Nicholls, UKHospitality