UKH urges government to improve duty reforms

In response to the alcohol duty system reforms announced in the last budget, which include a reduced rate of duty on draught drinks, UKHospitality (UKH) has stated the case for the changes to be further expanded to boost the sector's pandemic recovery. 

Following a government consultation, the trade body is urging ministers to go further and faster in its reforms, particularly when it comes to draught beer and cider. The discount only currently applies to products in 40-litre plus containers, which UKH is asking to be extended so containers of 20-litres plus are brought into scope. The organisation has also stated a case for the relief's application to be brought forward to this Autumn and be set higher than 20%. 

Other requests include the government considering a reduced rate of duty for other products and package types sold through hospitality businesses, and for the administrative burden of complying with the excise duty to be further streamlined. 

"We very much welcome the alcohol duty review. Streamlining the system is a positive measure, underpinned by rational thinking and we particularly applaud the introduction of a reduced rate of duty for draught beer and cider, products sold almost exclusively through hospitality venues," says UKH chief executive, Kate Nicholls. 

"In the face of the cost-of-living crisis, it will be important for operators to keep the price of drinks for consumers as low as possible, particularly as operational costs continue to soar and, come this April, the industry will be hit with a triple whammy of increased VAT, business rates and labour costs. This will inevitably result in price rises across the sector and prove particularly damaging to pubs, restaurants and hotels that rely heavily on drinks sales.

"As well as this alcohol duty reform to help support the sector, we are also urging the government to keep the current lower rate of 12.5% VAT for the sector permanently for food, non-alcoholic drinks, entry fees and accommodation."

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