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A survey by the UK Spirit Alliance found venues have had little benefit from the Tory ‘Brexit pubs guarantee’ as Rachel Reeves is urged to act when she delivers the Budget next week
One in five pub and bar owners fear they’ll be forced to shut by this time next year, alarming research shows.
Around 9,000 venues could be lost within 12 months after a Tory “gimmick” failed to turn their fortunes around, campaigners warn. Publicans have called on the Government to scrap the disastrous ‘ Brexit pubs guarantee’ and instead cut back duty on spirits.
It came as MPs pleaded with the Government to provide much-needed support for pubs and bars. Tory MP Peter Bedford told a Westminster Hall debate that these contribute £18billion to the UK economy.
He said venues play a “crucial role” in communities and urged Chancellor Rachel Reeves to keep business rate relief to remain in place. It comes as Ms Reeves is urged to reverse the decision to hike duty on spirits by 10.1% made by the Tories last August .
The UK Spirit Alliance (UKSA), which represents 280 distilleries, claims the increase cost the Treasury £300million in lost tax receipts. Business minister Gareth Thomas said: “Hospitality is the backbone of our high streets and the lifeblood of our communities.”
He said pubs and bars have been held back by an “antiquated” system of business rates which the Tories promised to reform, but didn’t. Mr Thomas said he would be speaking to the Chancellor before she delivers her first Budget next Wednesday.
The Tory Brexit Pubs Guarantee – a freeze on the tax of drink poured from a tap – has been slated by pub bosses, with just 4% saying it provided “adequate” support. A survey of over 200 pub and bar owners carried out by Survation on behalf of UKSA found a fifth believe they are unlikely to be open in 12 months.
Four in five said they would have to raise prices if there is a further increase on spirits duty. In a letter to Ms Reeves, members wrote: “This duty system has slammed the brakes on a booming sector leaving many distillers fearful for the future and rethinking their investment plans.
“Pubs are more than pints, and the last Chancellor’s duty increase heaped more pressure on struggling pubs and wider hospitality.”
Neema Rai, Founder of Westminster-based Thamesis Dock pub said: “The Brexit Pubs Guarantee did little to ease the burden, whilst drinks are increasingly unaffordable for consumers. A reversal of the 10.1% duty rise is crucial to ensure pubs and hospitality venues across the UK can continue to serve their local communities, making it a win-win for the Chancellor and businesses alike.”
