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Budget 2023: Mixed reaction to support measure for pubs

Plans to make alcohol tax in pubs lower than supermarkets has been welcomed but some say it won't make a major difference as hospitality continues to face a raft of challenges.

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The hospitality industry has been impacted

Chancellor Jeremy Hunt said in his Budget that, from August 1, the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, which he said was "a differential we will maintain as part of a new Brexit pubs guarantee".

Seb Slater, executive director of Shrewsbury BID, said: “Supporting the hospitality industry by making alcohol tax in pubs lower than supermarkets is to be welcomed, although it’s vital that brewers actually pass on that benefit to pubs so they can, in turn, pass it on to customers.

“It’s also encouraging to hear more positive news about the economy in general, and the extra support for household energy bills will hopefully give people the confidence to keep spending in the high street.”

But Johnny Jones, leaseholder of North Street Social in Wolverhampton, said: "It won't make a massive difference.

"The current climate is affecting people's pockets so people can only go out for specific things. That's a behaviour change from Covid as well.

"The city centre here can be dormant unless it's a match day or we have an event going on.

"The days of steady trade have gone and it's much more event destination driven.

"People haven't got the disposable income to do things that they might once have done, so they will stay at home and watch Netflix and it will be cheaper than a night out."

Shane Parr, from Stonehouse Brewery Limited in Shropshire, added: "Pub and the whole hospitality industry need all the help they can get at the moment.

"We are still trying to find out detail of the simplified duty system when it comes in. There are a lot of sliding scales for different products, spirits, cider and beer and the plan is to simplify that. In theory, for a smaller producer like us, it will hopefully be more beneficial."

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