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Hundreds of pubs could go bust if booze duty is not cut in the Budget, beer bosses warn Jeremy Hunt
Beer chiefs advised the Chancellor that championing the thriving pub sector would let the Government achieve true Levelling Up
HUNDREDS of beer bosses representing Britain's most beloved brands have pleaded with Jeremy Hunt to slash alcohol duty by five per cent.
In a letter to the Chancellor yesterday, chiefs at the likes of Asahi, Budweiser and Greene King have warned hundreds of pubs could go bust unless crippling rates are brought down at the Spring Budget.
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It comes as The Sun re-launches our Save our Sups campaign to keep a 75 per cent reduction in business rates for pubs, clubs and hotels.
Our campaign also calls for Mr Hunt not to hike alcohol duty so the hard-pressed sector need not raise booze prices in August.
Bar and brewery chiefs say the Chancellor could unlock 13,000 jobs with a five per cent cut.
He could also prevent a repeat of 2023, when more than 600 pubs tragically closed down due to soaring bills, red tape and levies.
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In their letter, beer bosses said: “No government should turn a blind eye to the erosion of such an integral economic and cultural asset.
“By underpinning a successful and thriving beer and pub sector, we will provide you the short cut to achieving genuine Levelling Up in every corner of the country.
“The Spring Budget could help ensure that the Great British beer and pub sector can help contribute to wider growth and prosperity for the local high street and the wider national economy.”
Meanwhile, leaders in the spirits industry have warned that bars and restaurants could close doors "for good" unless duties on gin and whiskey are also slashed.
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A spokesman for the UK Spirits Alliance said: “The Chancellor must include the spirits sector in a cut to alcohol duty in the Spring Budget.
"Spirits make up a third of all alcoholic drinks consumed in the pub and with 80% of a bottle of gin already taken in tax, the hospitality sector is being priced out of business and pubs are closing their doors for good. It’s time to cut the duty to save our pubs”.
Graeme Littlejohn, Director of Strategy at the Scotch Whisky Association added: “The Chancellor's duty hike last August has cost the Treasury nearly £100 million in lost tax revenue and leaves consumers paying double the tax on a dram in Edinburgh that they would in Paris.
"Jeremy Hunt must use the Budget to cut alcohol duty and support vital Scottish businesses."
Backing our campaign, Tory MP Greg Smith said: “The beer and pub sector delivers both economic and social value to local economies and communities across the country, yet it is one of the highest taxed sectors.
“At this Budget the Chancellor has the opportunity to start redressing this misbalance with a cut to beer duty and a cap to business rates.”
Alun Cairns, Conservative MP and Chair of the All Party Parliamentary Group on beer, added: “It was wonderful to see beer duty frozen once again at the last Autumn Statement, and the introduction of the Brexit Pubs Guarantee means there will always be less tax on a pint at the pub than the supermarket.
“Britain's pubs and brewers generate so much value for local economies and communities and it is clear that a cut to beer duty at the Spring Budget can be a driver of economic growth and job creation.”
A Treasury spokesperson said: “From April eligible pubs will continue to get 75 per cent off their business rates bills, which comes on top of a six-month alcohol duty freeze and our Brexit Pubs Guarantee commitment to keep duty on draught drinks lower than in shops.”
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