The hospitality industry has received an early Christmas present with the news the chancellor has decided to freeze alcohol duty for an additional six months.
Chancellor Jeremy Hunt has announced that alcohol duty will be frozen until August 2023. It was due to increase in February.
The new Chancellor had previously scrapped Kwasi Kwarteng’s plans to freeze alcohol duty in the autumn statement and announced that it was set to rise by RPI inflation, and at the time of the statement RPI was just over 12% (its now over 14%) – which would have seen a 7p increase on a pint of beer, 38p on a bottle of wine and more than £1.30 on the price of a bottle of spirits.
Nuno Teles, Managing Director GB said today, “The decision by the Chancellor to freeze alcohol duty until August will come as a much needed Christmas present for hard pressed pubs, bars and restaurants up and down the country. Today’s news provides much needed certainty for the sector and we raise a glass of Guinness to the Chancellor and the PM in thanks. Cheers, Chancellor!”
Emma McClarkin, CEO of the British Bar and Pub Association said the the time of Jeremy Hunt’s autumn statement in October, “The Chancellor’s decision to reverse the Alcohol Duty Freeze is a huge blow to brewers and pubs. The freeze would have delivered a £300m saving to our industry at a critical time when we desperately need any relief to help us survive and recover”.