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BLITZ ON BOOZERS
Labour plots ‘sin tax’ raid on booze in Budget as pubs reel from threat of outdoor smoking ban
A proposed smoking ban is said to be part of a 'five-point plan to kill pubs' by Chancellor Rachel Reeves
DRINKERS and smokers face being clobbered in a Budget “sin tax” raid to boost Treasury coffers.
But pub chiefs fear the move — which could see prices hiked for beers, cider and spirits — would be a crushing blow for beleaguered boozers.
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The fresh threat comes as Health Secretary Wes Streeting — who previously insisted he’s not the “fun police” — called for a national debate on an outdoor smoking ban.
And earlier this week health minister Andrew Gwynne caused alarm when he mooted a licensing law overhaul to cut opening hours.
The idea was quickly quashed.
Worried industry insiders yesterday pointed to talk of minimum unit pricing, duty hikes, smoking bans, packaging costs and the lack of a positive vision for the sector as a death knell for pubs.
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They fear any hikes in duty to help fill a £22billion Budget black hole will cause carnage, especially in the lucrative Christmas season.
One industry big wig warned Chancellor Rachel Reeves that she “could crush a sector already firefighting massive costs and struggling to survive”.
A five per cent beer duty hike would lift the cost of a pint by 2.45p.
If struggling publicans take on the burden their profit per pint drops from 12p to 9.55p.
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Currently 35 per cent of hospitality businesses are not making a profit and some 500 pubs shut for good last year alone.
Meanwhile, the pub and brewery sector contributes £26.2billion to the UK economy and also generates £15.1billion in tax.
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Emma McClarkin, chief of the British Beer and Pub Association, said any plan to further hurt pubs will be a “bitter blow”.
She said: “After the Chancellor’s pre-election promise of a five point plan for pubs, it is impossible to see how this will be fulfilled if the price of a pint is increased by the Government.
“The cost of doing business has soared in recent years and, with potentially new punishing burdens, this tax increase is the last thing pubs and beer drinkers need.”
On the other hand, the BBPA estimates a five per cent drop in beer duty would create an extra 12,000 jobs.
Ms McClarkin also wants Ms Reeves to maintain 75 per cent business rates relief and said: “Anything less will be a total betrayal of the great British pub that this Government promised to protect, and the one million jobs that depend on them.”
Brian Perkins, CEO of Budweiser Brewing Group UK, said: “Rather than increasing beer duty, the new Government should support our struggling brewing and hospitality sectors by cutting beer duty.
We definitely want to see smoking phased out in our country, we committed to that in our manifesto
Wes Streeting
“The average British pint is already taxed twelve times more than on the continent.”
Mark Kent, of the Scotch Whisky Association, said: “A further duty increase would be a hammer blow.”
“It would serve no economic purpose to increase duty on spirits, with a £300m reduction in revenue since the duty increase last year by the outgoing government.
"We need a change in direction from the new Chancellor.”
Ahead of the election Ms Reeves championed local pubs.
She said: “Brits love our locals. Let’s back our landlords to keep our pubs going. We want to save the British pub because I know what an important institution they are in so many communities.”
At the Budget in March, then Tory Chancellor Jeremy Hunt said alcohol duty — which was due to rise by three per cent in August — would stay frozen to February 2025.
But tobacco duty went up by £2 per 100 cigarettes in a one-off increase which ensured vaping was cheaper.
There is already anger at Labour’s nanny state plot to ban smoking in pub beer gardens.
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Mr Streeting told Sky News yesterday: “We definitely want to see smoking phased out in our country, we committed to that in our manifesto. I’m considering, and I’m up for a national debate on this issue.
“We’re becoming sicker sooner and there is a heavy price being paid for that in our economy, our public finances and our health.”
Addressing a booze and fag duty hike, a Whitehall source told The Sun: “The budget has not been decided, there’s a long way to go before the package is finalised.”
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One Treasury source tried to play down the move saying: “Sounds like a load of classic pre-Budget speculation to me.”
And a Treasury spokesman added: “We do not comment on speculation around tax changes outside of fiscal events.”
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Tough on NHS
WES Streeting has defended his recent criticism of the NHS, insisting only urgent reform can save the struggling service.
The Health Secretary made it clear he will not be swayed by critics, after anonymous NHS insiders told the BBC of “growing unease” over the Government’s messaging.
He told the Labour Party conference yesterday that not acknowledging the problems in the NHS would result in “killing it with kindness”.
Mr Streeting said: “I know the doctor’s diagnosis can sometimes be hard to hear.
“But if you don’t have an accurate diagnosis, you won’t provide the correct prescription.
“And when you put protecting its reputation above protecting patients, you’re not helping the NHS, you’re killing it with kindness.
“I won’t back down. The NHS is broken, but it’s not beaten, and together we will turn it around.”
His comments come after senior people in the health service expressed unease over Labour’s tough talk.
One hospital chief told the BBC harsh rhetoric could spook patients and crush staff morale. He added: “Hope is important.”
In recent weeks, the Government has claimed cancer is a “death sentence” due to NHS failings, while maternity services “shame” Britain.
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