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
Pub rates subsidised but alcohol duty increased by Philip Hammond
Pub rates subsidised but alcohol duty increased by Philip Hammond

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.

In recent times the number of SME’s tackling big markets have increased as passionate businessmen and women turn their dreams into reality. However, it is not always as easy as it seems with a large number of start-ups failing within their first year.Today’s Budget released by Chancellor of the Exchequer George Osbourne outlined a range of points set to try and help these businesses. One organisation which is likely to be affected by the Budget is local events industry leader Mobile Bar Hire Ltd.

The hospitality providers have been helped by the freeze in beer, cider and spirits duty which will see their prices also freeze. Also set to help the firm add to their already established business is the reduction in corporation tax from 20% to 17% by 2020. Being one of the largest expenses to any SME, corporation tax reductions is set to help millions of organisations throughout the UK.

Mobile Bar Hire’s fleet of vehicles will see their petrol prices staying consistent as George Osbourne also announced as freeze on fuel duty. This will help the business reach its customers not just in the UK but further afield in Europe.

George Osborne announced a freeze on beer duty in the Budget.
George Osborne announced a freeze on beer duty in the Budget.

The much discussed sugar tax was announced and will see charges being calculated depending on the amount of sugar in the drinks with pure fruit juice and milk based drinks being exempt. Whilst the tax is welcomed by the industry amid health concerns, its impact will not be seen for a while.

Mobile Bar Hire Director Av Sandhu said, ‘it is great that the government are looking to help businesses in the hospitality sector which is an industry in decline.  The corporation tax rate reduction is also another key factor which gives us confidence to push forward with our plans. Being an employer of apprentices already, we will look to hopefully employ more staff members from the local Borough of Bexley to boost the local economy.’

What do you think about the Budget freezing beer duty? Let us know here.