The Budget could kill “the affordable pint” as brewers and hospitality firms warn the chancellor that they will be driven out of business by further costs.
Rachel Reeves has been warned that raising taxes on alcohol and pubs would lead to a fall in revenues by depressing sales of drink.
In a letter sent to Reeves, hospitality chiefs also suggest Angela Rayner’s proposals to boost workers’ rights could cause a staffing crisis.
It comes after it was reported that the chancellor was considering an increase in alcohol duty in the Budget and also failed to confirm that 75 per cent business rates relief for pubs will be extended beyond next April.
The alcohol duty was frozen for almost three years under the Conservatives, until August 2023 when it was was increased by 10 per cent.
Drinks companies say they are already facing a “cost-of-doing-business crisis”.
A letter organised by the British Beer and Pub Association (BBPA) said: “The industry simply cannot afford other costs, let alone tax increases.
“Put plainly, for thousands of pubs and brewers across the country there is nothing left to give. The cost of this will be borne by brewers and pubs initially but… ultimately it is the customer who will have to foot the bill.”
It was signed by a number of industry giants including; Greene King, Youngs, Heineken UK and Wetherspoons.
More to follow…