Budget 2020: Beer duty increase scrapped
Chancellor Rishi Sunak announced today that he will scrap the planned beer duty increase in a move to protect pubs.
He also announced that duty will be frozen on wine and cider, and said that the business rates discount for pubs will increase from £1,000 to £5,000.
Sunak said: “I’m also pleased to announced that the planned rise in beer duty will also be cancelled. And because of desions I’ve taken elsewhere in this budget I’m also freezing duties for cider and wine drinkers as well.
“For only the second time in almost 20 years that is every single one of our alcohol duties frozen.”
British Beer and Pub Association (BBPA) chief executive Emma McClarkin said: “Pub goers across the UK will be toasting the chancellor tonight for freezing beer duty. This freeze alone will save pub goers £80m and secure 2,000 vital jobs across the country.
“82 per cent of the beer we drink here is brewed in the UK, so this is a very welcome decision that will help pubs and brewers across the UK. Cheers to the chancellor!”
David Cunningham, programme director of campaign group Long Live The Local, said: “Whilst not a cut, by freezing beer duty, the chancellor has recognised the value of local pubs and Britain’s brewers.”
BBPA said last week that total beer sales increased by 1.1 per cent last year to more than 8bn pints, boosting revenue for HM Treasury by £57m. However, the industry group warned that an increase in beer duty could stifle growth.
Conservative MPs delivered a letter to former chancellor Sajid Javid last month, imploring him to cut beer duty. Chairman of the All-Parliamentary Beer Group Mike Wood and Sheryll Murray, the MP for south east Cornwall, delivered the letter signed by 85 Tory MPs.
The UK pays 54.2p in duty per pint of 5 per cent ABV beer, compared to 19.3p in the Netherlands, 12.2p in Belgium and 4.8p in Germany.
Miles Beale, chief executive of the Wine and Spirit Trade Association, said: “The decision to freeze wine and spirit duty is welcome for British business, pubs and the wider hospitality trade.
“While he has not cut duty, it is reassuring to see that in his first Budget as Chancellor, Rishi Sunak MP, has taken steps to address the UK’s excessively high duty rates.”
Wine Drinkers UK spokesperson Joe Fattorini added: “The recognition by the Chancellor that wine is the nation’s favourite alcoholic drink and therefore shouldn’t be singled out for tax rises is welcome news for the 33 million wine fans in the UK.”