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Draught pints to cost 1p less after alcohol duty cut

January 31, 2025
in Business
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Draught pints to cost 1p less after alcohol duty cut
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However, critics have said the tax reliefs are not enough to counter other decisions announced by Chancellor Rachel Reeves.

From April, the minimum wage will rise by 6.7% for those aged 21 years or older to £12.21. At the same time, firms will also pay higher National Insurance contributions.

Some pub owners have said they are looking at a 30p to 40p increase on a pint because of higher employment costs.

Last week, Wetherspoons chief executive Tim Martin said that higher employment expenses would cost the firm £80m a year.

He said measures announced in the Budget “have a significantly bigger impact on pub and restaurant companies than supermarkets” and accused politicians of being “dinner party goers, rather than pub goers”.

British Beer and Pub Association chief executive Emma McClarkin said pubs and brewers “now face an April cliff edge”.

However, unions have defended the increase in minimum wage and criticised large firms of “pleading poverty” while making big profits.

The government has said the rise in employers’ National Insurance payments was needed to fix the public finances.

The measures come at a time when the hospitality industry is already struggling.

Several bars, pubs, and restaurants have already said their venues are “eerily quiet” because people are not spending enough due to the cost of living.

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