Hard pressed publicans were thrown a lifeline today as Chancellor Jeremy Hunt extended the alcohol duty freeze until February 2025.
In the final budget before the next general election he said the move would benefit 38,000 pubs across the UK.
He said: “This benefits 38,000 pubs all across the UK – and on top of the £13,000 saving a typical pub will get from the 75 per cent business rates discount I announced in the Autumn.
“We value our hospitality industry and we are backing the great British pub.”
The freeze in duty was due to end in August but it now has been extended for another six months.
Today’s announcement comes at a challenging time for Britain’s hospitality industry, with businesses buckling under the strain of customers spending less and red-hot supply costs.
Already this year, Rekom night club has closed 17 of its sites and lost over 400 jobs as part of its pre-pack administration.
It’s the second time in less than five years the late night operator has been forced to warn on its future, after it underwent a major restructuring amid the pandemic.
The sector had been pinning their hopes on a cut to VAT to below its usual rating of 20 per cent, similar to what had been offered during the pandemic.
More to follow