However, she said: “Our industry will be facing an overall tax hike, not a reduction come August. The British Beer & Pub Association (BBPA) is anticipating a £220m hit to the industry's finances when duties rise in August.Įmma McClarkin, chief executive of the BBPA, said: “The cut to draught duty as part of the alcohol duty reform is positive and we hope that it will result in a boost for our pubs this summer.” However, pub bosses warned relief for draught beers would not keep them afloat as costs soar. He said the move was only possible because of Brexit, because the European Union does not allow member countries to levy different taxes based on the package drinks are sold in. Jeremy Hunt unveiled a “Brexit pubs guarantee” on Wednesday, which will increase tax relief on draught beers and ciders from August 1 as part of efforts to keep the hospitality industry competitive with supermarkets. It’s bad news for spirits, it's bad news for Scotch, and it's bad news for Scotland, which produces 90pc of all the spirits in the UK.” “A 10.1pc rise in duty is the highest since 1981. It’s bad news for the consumer, it’s bad news for inflation. Mark Kent, chief executive of the Scotch Whisky Association (SWA), said: “This is a budget of bad news as far as we’re concerned. Industry leaders dismissed the Chancellor's claims that he was giving pubs a Brexit dividend and accused Mr Hunt of imposing a “Budget of bad news” on consumers.ĭuties for beers not sold on draught, wines and spirits will rise by an expected 10.1pc in August, in line with inflation – meaning drinkers will suffer some of the highest price increases in more than 20 years. Jeremy Hunt has been accused of stifling the Scotch whisky industry after he failed to protect drinkers from a 10pc surge in alcohol duty.
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