Increased duty on alcohol will ‘cripple’ hospitality businesses
Colin Neill, of Hospitality Ulster, said businesses will have no option but to increase prices.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Increased duties on alcohol are set to “cripple” hospitality businesses, it has been warned.
The increases to a number of drinks, set out in the Spring Budget, are set to come into force on Tuesday.
Hospitality Ulster said the “biggest single alcohol duty increase in almost 50 years” has been exacerbated by the new way duty on alcohol will be calculated.
The new method will measure the alcohol content in a drink, and some products that previously had a low duty rate will see greater increases.
The Treasury said the historic duty changes mean that the duty paid on drinks on tap in pubs will be up to 11p lower than at the supermarket, and described the changes as designed to help pubs compete on a level playing field with supermarkets.
Colin Neill, chief executive, Hospitality Ulster said businesses are already under pressure in terms of inflation, rates, National Insurance contributions and insurance.
He said they will be forced to raise the prices they charge for alcohol.
“The immediate future remains challenging, and it is vital that we ensure our valued customers understand the price increases are down to the Government – not hospitality businesses,” he said.
“This has left hospitality businesses, who are fighting to break even, no choice but to pass on the significant duty increases to customers.
“This is heaping misery on customers and will damage hospitality businesses at the same time.”
He said taking into account overheads for labour and bills, a publican is likely to be making around 50p on a pint.
“That’s just not sustainable at a time when costs are rising all around us,” he said.
“The hospitality sector is one of the highest taxed and undervalued sectors in the UK, but we will continue to work in partnership with UK Hospitality to press the British Government to recognise the importance of the industry.”