Pubs were provided a helping hand by the Chancellor Philip Hammond in yesterday’s Spring Budget. British pubs are closing at over 20 a week throughout the country due to high rates and duty but pub rates are set to be reduced by £1000 for establishments with a rateable value of less than £100,000.
The rateable value of a pub is calculation based on the rental value of the space which will see 90% of British pub rates subsidised by the scheme.
However, many landlords are seeing this as a double ended sword as beer, cider and certain spirits have seen a hike in duty:
- Duty on a 750ml bottle of wine increases by 8p to £2.16
- Duty on a 750ml bottle of sparkling increases by 10p to £2.77
- Duty on a 750ml bottle of fortified wine increases by 11p to £2.89
- Duty on a 70cl bottle of vodka at 37.5% increases by 28p to £7.54
- Duty on a litre bottle of vodka at 37.5% increases by 40p to £10.78
- Duty on a 70cl bottle of Gin at 40% increases by 30p to £8.05
- Duty on a litre bottle of Gin at 40% increases by 43p to £11.50
So, whilst pub rates have been subsidised for smaller establishments, their beer duty has been increased which could potentially seriously affect brewery-tied pubs which have a small profit margin. Beer duty has been raised by 2p a pint for the first time in 5 years.
“UK beer drinkers, pubs and brewers have been let down by the Chancellor’s decision to increase beer duty for the first time in five years,” said Colin Valentine, CAMRA’s national chairman.
If you think help with pub rates are a positive but increase in alcohol duty a negative, please let us know here.