No concessions on VAT, but allowing all pubs to sell a guest beer comes a step closer
An industry-wide campaign to achieve a halving of VAT for hospitality businesses failed to impress the Chancellor in the recent Budget, but there were some positive moves to help pubs.
The ongoing online campaign “VAT’s the Problem” includes a petition signed by over 400,000 people – local landlord Paul Silcock writes on this in the Comment section.
CAMRA Chairman Ash Corbett-Collins said: “Beer and pub businesses were crying out for a cut in VAT on food and alcohol, as well as action on sky-high energy bills and increased Employer National Insurance Contributions. The lack of action on all of these issues will only contribute to more otherwise viable pubs having to call last orders for good.
“We’re glad that the Chancellor has targeted new measures at small pubs, independent brewers and cider makers, even if the wider picture on beer tax, VAT and energy costs will disappoint many drinkers, pub and beer businesses.
“The announcement in the Chancellor’s ‘Red Book’ that tied pub tenants in England and Wales will be allowed to serve a guest beer of their choice is incredibly welcome. This could, if introduced properly, help independent brewers get more of their beers onto bars. We’re looking forward to working with the Government to get the details right and deliver greater choice for drinkers.
“The Government needs to go further by making changes to make sure we can get decent beers from independent British and Irish brewers in all pubs instead of the same, bland beers from multinational brewing businesses that dominate at the bar. The Government must release the full results of their Access to Market Review, first announced two years ago, as soon as possible and make changes giving drinkers a choice of beers that they actually want, and independent brewers get a fair shot at the market.”
Alcohol duties are up again, however, and Ash added: “Drinkers will be disappointed to see a beer tax rise that will be passed on to pints in pubs in the Budget. The Chancellor could and should have cut tax specifically on beer and cider served in pubs, and hiked duty on cheap supermarket alcohol, to help level the playing field. At a time when many pubgoers, pubs and brewers are struggling to make ends meet, increasing taxes on pints in pubs is the wrong decision.”
Small Producer Relief is being made more generous for small brewers and cider makers, which Ash described as great news.
Local landlord Rory Hanrahan, who runs the Vine Inn in Cumnor and writes about pubs in the Daily Telegraph and Spectator, said the Budget’s concessions to help pubs were of no great help as all costs continue to rise. He described an increase in business rates relief as like being handed a £5 note while £50 was taken from your back pocket.
Also in Parliament, MPs debated the future of cask ale and how it could be protected. MPs debated “the potential merits of recognising the production and serving of cask ale as intangible cultural heritage”. Speakers from five political parties across the UK backed official recognition of cask, better access to market for independent brewers, and the need to protect the UK’s brewing heritage.
The debate came about because of Derby CAMRA’s local campaigning against misleading Fresh Ale kegged beer served through traditional cask handpulls, which convinced Derby South MP Baggy Shanker to apply for a debate about protecting and promoting cask.
UNESCO’s Intangible Cultural Heritage scheme has already seen recognition for Belgian beer and the French baguette. The first step to getting cask ale the same recognition is a listing under the UK government’s Living Heritage scheme, which would then open up the possibility for its nomination for UNESCO listing.