Pub goers across the north and north-east have been saved from increases in draught beer after a cut in duty was announced in the Spring Budget.
“A Brexit Pubs Guarantee” will ensure draught beer is up to 11p cheaper than alcohol in supermarkets.
Chancellor Jeremy Hunt said he had made the decision to freeze duty to help “the great British pub”.
‘Good news for punters’
The move was welcomed by Aberdeen hospitality entrepreneur Colin Cameron, owner of Kirkgate Bar on Upperkirkgate, Masada on Rosemount Viaduct and The Bridge Bar on Bridge Street.
He said: “It’s good news for the pub trade and good news for the punters.
“We are pleased to see he has been thinking about the pub trade.
“We don’t need to raise prices to cover any increase in duty.
“Having done this, it may put pressure on the likes of Tennent’s to not put their prices up or by very much when they do their increases.
“There are pressures on these companies but the pub trade wants to stay alive and keep prices as they are just now.”
Save ‘the great British pub’
Mr Hunt said: “My penultimate cost-of-living measure concerns one of our other most treasured community institutions, the great British pub.
“In December I extended the alcohol duty freeze until August 1, after which duties will go up in line with inflation in the usual way.
“But today, I will do something that was not possible when we were in the EU and significantly increase the generosity of draught relief.
“From August 1 the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.
“British ale may be warm, but the duty on a pint is frozen.”
But drinkers will see tax on other alcohol soar by 10.1% in August in line with inflation after a freeze during the peak of the cost-of-living crisis.
The Wine and Spirit Trade Association previously warned the tax on some alcohol could shoot up as much as 44% with the changes.
The exact level of duty applied to each type of alcoholic drink varies.
Industry reaction
The Scottish Licensed Trade Association (SLTA) has also welcomed the freeze on draught beer duty.
SLTA managing director Colin Wilkinson said: “This is good news and a good start to helping the struggling hospitality sector get back on its feet.
“Our pubs and bars have suffered enough since the onset of the Covid pandemic.
“This new policy from the UK Government – the ‘Brexit Pub Guarantee’ – certainly gives many businesses some hope for their future.
“The UK Government should now go further and consider further duty differentials on other alcohol products sold in our pubs and bars if it really wants to save our industry – something we have been advocating for at least the last two years.”
Scottish Tourism Alliance chief executive Marc Crothall said: “Many in the hard-pressed pub sector will welcome the announcement of the freeze on duty for draught products at a time of rising costs for all within the hospitality industry.”
