Kent Pub reacts to 1p reduction on the cost of draught beers

KentOnline / KMTV

They say government's 1.7% reduction on beer duty won't have any affect on prices, with higher business rates, minimum wage and national insurance driving the cost up.  Finn Macdiarmid reports.

Transcript

00:00Well, do you know, John, it's such a lovely day. I thought I might have a glass of beer.

00:07Oh, what a good idea. A nice, refreshing glass of crisp beer on a day like this.

00:15Just the job. Could we have two nice glasses of beer, please?

00:22Pints, is that?

00:23If their pints are below 8.4%, which, let's face it, most are,

00:29they'll get a 1.7% reduction on their tax, as announced in last year's budget.

00:34But what does that mean for the actual price?

00:37Now, while the government's decision to cut beer duty is the first time they've done this

00:41in a decade, and it might sound quite good, it's not actually going to take as much off

00:45the price as you might think. 1.7% off the beer duty will only have about a penny's worth of

00:51impact on the price of the actual beer. That's right, just one penny off is the

00:56current number, but that's not where it ends, with a lot of pubs like the Macklind Arms in

01:00Raynham having more than just the beer duty to worry about.

01:04It's going to make a penny, take a penny off of most beers, but with everything else that's been

01:10loaded onto us, the reality is that the price of a pint's going to probably go up minimum 20 pence.

01:16Business rates, we used to have the 70% reduction, now that's been reduced to 40%,

01:23which is probably personally going to cost me an extra £1,000 a year.

01:27While pubs are saying the reduction is a good thing, it's just not enough to turn the tide.

01:31And it's not the only change, with wines and spirits getting a 3.6% rise in line with inflation.

01:37There's also an additional rise in national insurance contributions,

01:40and those are needed, according to the government, to fix public finances.

01:44The Exchequer's Secretary to the Treasury, James Murray, said,

01:47Through draft relief, small producer relief and expanding market access for smaller brewers,

01:52we will help boost sector growth and deliver our plan for change to put more money in working

01:56people's pockets. Last year, when the budget and the reduction were announced,

02:00we spoke to Britain's oldest brewer from right here in Kent.

02:03Well, pubs and small retailers are, and small businesses generally,

02:07are the least able to absorb inflationary costs. And one of the great problems we have with all

02:12governments is we never get a joined-up focus on the cumulative impact of all the policies that

02:19they have on small businesses. Small businesses just are not able to absorb all these costs.

02:25According to pubs, the British pint, while maybe not as flavourful as a Spanish one or strong as

02:29a German one, may need more than just a one-penny reduction to keep them in business.

02:34Finn McDermid for KMTV in Raynham.

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