Pub landlords and customers alike have reacted angrily over what was revealed – and hidden – in the Budget yesterday regarding alcohol duty.
One of George Osborne’s key announcements was that the alcohol duty escalator – which adds a two per cent tax increase to alcoholic drinks – would be abolished for beer, preventing a 3p rise this year. Additionally, beer duty will be cut by 1p per pint from Sunday evening.
The beer tax escalator, introduced in 2008 by then chancellor Alistair Darling, added two per cent to the price of a pint on top of inflation. Alcohol duties raised £10.2bn in 2010-2013, of which beer accounted for £3.4bn.
The decision to lower the tax has failed to impress people in the Upper Street’s bars, where the average pint already costs £3.65 – according to a survey by Islington Now.
David Miller, a customer at Vineyard, told Islington Now: “Raising the price of alcohol is a good thing. I don’t think its going to encourage people to drink at home.
James Driver, a customer at Upper Street’s Steam Passage Tavern, said: “It’s just a political signal to alleviate the austerity message. It doesn’t mean anything.”
Publicans and bar staff were also dismayed that the escalator will remain on wine and spirits. It will add a further 10p per bottle of wine and 53p to a litre bottle of spirits.
With local business already suffering, many believe that the new measures will damage trade further.
Gareth Jones, manager of The Old Red Lion Pub on St John Street, said: “It’s absolute b******. We’ll still be charging the same for it, because once it trickles down through the breweries and then to the pubs it’ll end up costing the same.
“Wine and spirits is where you make the most profit, so George Osborne is just cutting back the margin of profit.”
Lloyd Donnelly, a worker at The Arc, on City Road, said: “They just give with one hand and take with the other.”
“The price of drinks has risen so significantly over the past few years, give it another few years and another few increases and it all adds up. Cutting 1p off a pint definitely isn’t going to help.”
Graphic by George Arnett
