Reacting to Jeremy Hunt’s announcement that beer duty will be frozen until February 2025 at today’s Budget, Emma McClarkin, Chief Executive of the British Beer and Pub Association said:

“It is good news that the Chancellor was able to extend the freeze to beer duty at this Budget and will be welcomed by brewers, pubs and consumers alike and will go some way to keep the price of a pint affordable.

“However, this April brewers and pubs still face a £450 million cliff edge of spiralling wage costs and business rates increases, particularly those pubs that are larger or food-led. It is disappointing that the Chancellor did not choose to go further with a cut duty, reduce VAT or cap the increase to the business rates multiplier which would have helped mitigate the huge cost of doing business. Pressures on our sector remain acute with margins being squeezed to the point where we fear it is likely that a further 500-600 pubs are likely to close this year on top of the 530 that closed in 2023. No government should turn a blind eye to the erosion of such an integral economic, social and cultural asset and it is vital that at the election the political parties commit to putting in place a fiscal and policy framework that will see our sector thrive for the long term and not continue to deteriorate.

“We very much hope that the decision to cut National Insurance contributions for all workers by 2p in the pound will boost consumer spending power and encourage people to enjoy an extra pint in their local, but I urge the Government to look again at the urgent measures needed to make the cost to doing business more affordable at the next fiscal event and through policy commitments made in the run up to the election to truly back the British Pub.”

A HEINEKEN spokesperson said:

“We welcome the freezing of alcohol duties until February 2025. This freeze will help bring out the best in the great British Pub. Licensees across the UK now need further help to thrive, in the form of long-term, fundamental reform to the business rates system which despite recent support still sees UK pubs overpaying by £400m.”

Statement from Paul Davies, CEO of Carlsberg Marston’s Brewing Company (CMBC)

“We're pleased to see the Chancellor has listened to the beer and pub industry which has strongly made the case that any increase to duty for our sector and our customers would be hugely damaging. Today’s announcement that duty will be frozen until February 2025 will make a tangible difference to hospitality and the brewing sector, as our industry continues to adapt to a challenging operational climate which has seen many pubs sadly closing their doors in recent months. 

“As we look ahead to a General Election, we call on the Government, Opposition and for all parties to show their support for our sector in the coming months to protect the UK’s proud pub culture and the crucial economic and social benefits that it brings to communities across the country.”

Kevin Georgel, Chief Executive, St Austell Brewery said:

“As a brewery, we welcome the Chancellor’s decision to extend the freeze to beer duty in today’s budget, but this will not see costs cut for our sector.

“The UK still has one of the highest levels of beer duty in Europe - 12 times higher than Germany. We would therefore like to see the government set out a roadmap to bring current duty down to the European average.

“Great British pubs are at the heart of their communities, but they remain over-taxed and under increasing pressure due to the impact of inflation, the cost of living, reduced footfall, and high operating costs. This was not addressed in today’s budget. We therefore urgently need the long-term reformation of business rates, a VAT cut, and more meaningful government support to reduce the tax burdens on our sector - one of the UK’s leading employers and social and economic contributors.”