Pubgoers and smokers face Budget 'sin tax' raid in bid to fill £22bn black hole in public finances
25 September 2024, 23:29 | Updated: 14 October 2024, 07:56
Pubgoers and smokers face being hit by a Budget 'sin tax' raid in a bid to fill the £22bn black hole in public finances.
Listen to this article
Loading audio...
The move, which could see prices for beers, cider and spirits increased, has sparked concerns among pub chiefs who believe it will be a crushing blow for boozers.
It comes after Health Secretary Wes Streeting also called for a debate on an outside smoking ban.
The proposals are part of a "five-point plan to kill pubs" by the Chancellor, according to the Sun.
Industry insiders told the paper that there had been talk of minimum unit pricing, duty hikes, smoking bans, packaging costs and lack of positive vision for the pub sector.
A five per cent beer duty hike would see the cost of a pint go up by 2.45p.
Emma McClarkin, chief of the British Beer and Pub Association (BBPA), said the move would be a "bitter blow".
"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," she said.
"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."
The BBPA has estimated that a five per cent drop in beer duty would help created a further 12,000 jobs.
She also called for the Chancellor to maintain 75 per cent business rates relief.
"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," she said.
Meanwhile, 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.
"The average British pint is already taxed twelve times more than on the continent."
Nick Ferrari is joined by Sir Keir Starmer | Watch the full interview
It comes after the PM shut down claims that pubs will be forced to close early to tackle harmful drinking.
Speaking to LBC's Nick Ferrari at Breakfast, Sir Keir said the claims were "nonsense".
It came after public health minister Andrew Gwynne told a Labour Party fringe event that the government was considering "tightening up the hours of operation" of bars and pubs.
The move was suggested in a bid to tackle anti-social behaviour and boost health.
But Sir Keir told Nick: "This is not government policy. We are not going to do it."
He added: "Closing time is not going to change. I can give you that guarantee."
