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Draught pints will cost 1p less from the beginning of February following a cut in alcohol duty.<\/p>\n
The 1.7% tax drop on the production of draught alcohol announced in last year’s Budget is the first alcohol duty cut in a decade.<\/p>\n
However, critics have said increases in employers’ National Insurance contributions and minimum wage rises mean pint prices will ultimately go up as pubs pass on higher costs to customers.<\/p>\n
A relief for craft alcohol producers also comes into effect from the beginning of next month, with both policies costing \u00a385m.<\/p>\n<\/div>\n
The relief applies to draught drinks below 8.5% ABV, which equates to a 1p tax cut on an average-strength pint.<\/p>\n
The measure will affect three-fifths of all alcoholic drinks sold in pubs, the government said.<\/p>\n
Meanwhile, the small producer relief is for products which are below 8.5% ABV, and tapers away the more alcohol is produced.<\/p>\n
The Society of Independent Brewers and Associates said the policies would help pubs compete against cheap alcohol sold in supermarkets.<\/p>\n<\/div>\n
However, critics have said the tax reliefs are not enough to counter other decisions announced by Chancellor Rachel Reeves.<\/p>\n
From April, the minimum wage will rise by 6.7% for those aged 21 years or older to \u00a312.21. At the same time, firms will also pay higher National Insurance contributions.<\/p>\n
Some pub owners have said they are looking at a 30p to 40p<\/a> increase on a pint because of higher employment costs.<\/p>\n Last week, Wetherspoons chief executive Tim Martin said that higher employment expenses would cost the firm \u00a380m a year.<\/p>\n He said measures announced in the Budget “have a significantly bigger impact on pub and restaurant companies than supermarkets” and accused politicians of being “dinner party goers, rather than pub goers”.<\/p>\n British Beer and Pub Association chief executive Emma McClarkin said pubs and brewers “now face an April cliff edge”.<\/p>\n However, unions have defended the increase in minimum wage and criticised large firms of “pleading poverty”<\/a> while making big profits.<\/p>\n The government has said the rise in employers’ National Insurance payments was needed to fix the public finances.<\/p>\n The measures come at a time when the hospitality industry is already struggling.<\/p>\n Several bars, pubs, and restaurants have already said their venues are “eerily quiet” <\/a>because people are not spending enough due to the cost of living.<\/p>\n<\/div>\n