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Labour Raises Alcohol Duty: Pubs Under Threat

The government intends to increase alcohol duty despite repeated calls from industry representatives to freeze taxes. Labour's desire to boost Treasury revenues by slowly killing off traditional pubs has sparked a storm of outrage on social media.

Chancellor John Healey proudly announced measures to support small London pubs by raising the small business rates relief threshold from £12,000 to £18,000. He then immediately announced that duty on every pint of beer sold would be linked to the Retail Price Index, which stands at 3.9%. This means the duty on a pint of beer will rise from 50p to 52p, a bottle of wine will become 10–12p more expensive, and a bottle of gin with an alcohol content of 37.5% will cost an additional 35p.

According to industry representatives, British pubs already pay some of the highest taxes in Europe — 12 times more than in Germany and Spain. Given that Healey has also announced an increase in the minimum wage, the financial burden on pubs will rise considerably.

Ash Corbett-Collins, chairman of the Brewers' Association, said: "At a time when many pub-goers, pubs and brewers are struggling to make ends meet, increasing taxes on pints in pubs is the wrong decision".

John Healey Celebrates Tax Rises with a Pint of Beer

John Healey decided to mark his speech ahead of the new budget at Westminster's oldest pub, the Two Chairman, where he downed a pint of Chancellors Choice in one go. The beer had previously been brewed in honour of the much-publicised support measures. Social media users described the spectacle as outright mockery.

“He flicked his red tie over his shoulder sank it in one then turned the glass over his head to say cheers. The irony everyone is pointing out in that same budget he raised alcohol duty by 3.9% adding another 2 pence to the price of a pint which will again put pressure on pubs keeping going and again the working man and his one enjoyment of having a drink after a long week at work! Seems its ok for me not for thee!” – writes outraged Restore Britain activist Alexandra.

Pubs Are Closing in Their Hundreds

Incidentally, the brewers were clearly too quick to produce a celebratory beer. Many industry representatives point out that the promised business support measures are nothing more than a populist stunt.

“The majority of British pubs will not fall into the Chancellors Business rate reduction. For me, this was a move to get headlines that they’re trying to save pubs. Extra wage increase will be the final nail in the coffin for many struggling. THEY ARE KILLING PUBS”, - stresses writer and pub owner Adam Brooks.

The industry is already in a deep crisis. Last year alone, 977 pubs closed — 19 establishments every week.

“Yet while politicians grab their photo opportunities in a pub, the sector is slowly being decimated by rising costs, energy & utility bills, wage pressures, taxation, business rates, VAT, inflation across all supplies, excessive legislation, red tape and a shrinking economy blighted by the cost of living crisis. How many more venues must close before someone delivers a real policy for hospitality, with a plan to Save The Great British Pub?” – asks Staffordshire county councillor Martin Murray.

Social media users openly accuse the government of deliberately destroying the industry. However, Labour appears to care little about this. So they will probably mark the funeral of British pubs with another pint of beer.

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