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