To help Britain’s beleaguered pubs, the local government is freezing draft beer taxes. From August 1, taxes are lower than those in supermarkets. All other alcoholic drinks in pubs should not be covered by the regulation.
The industry therefore reacted sceptically. The head of the British Beer and Pub Association, Emma McClarkin, said pubs could hope for a boost in the summer. However, the measure by no means compensates for the “catastrophic consequences of rising inflation and unfair energy contracts” for pubs and breweries. There have been significantly fewer pubs in the UK for years. Among other things, the high beer tax, the smoking ban, but also changed drinking behavior and cheaper alcohol in the supermarket contribute to this.
The increased energy prices have also benefited the local owners. Chancellor of the Exchequer Jeremy Hunt announced in London on Wednesday that draft beer taxes would be frozen. “From August 1, taxes on tap products in inns will be up to 11 pence less than taxes in supermarkets. British beer may be warm, but taxes on a pint are frozen,” said Hunt.
It’s a “Brexit Pub Guarantee” as Britain’s departure from the EU made this help possible in the first place. However, critics point out that the exit has hit the industry enormously, as, for example, cheaper labor from the European Union can no longer be employed due to stricter immigration rules.
Also ask in Austria
In Austria, the brewery association recently argued for a reduction in the tax on draft beer. The reason for this was criticism from innkeepers that the breweries sold the beer to pubs at too high a price compared to supermarkets. In December, Austrian brewery workers went on strike for higher wages.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
