Major boost for struggling pubs as business rates are SLASHED giving hope to British boozers
BRITISH boozers were handed a major lifeline today as Rishi Sunak slashed business rates.
The major shake-up – the biggest in 30 years – will see the hospitality, retail and leisure industry given a 50 per cent discount.
The Chancellor said the new system, which applies up to £110,000, is a “simpler and fairer” way of doing things.
He told MPs the tax cut is “worth £1.7bn” and is the “biggest single rate tax cut for firms in 30 years”.
Mr Sunak said: “This will directly support the home of British community life for centuries: pubs.
“Even before the pandemic, pubs were struggling: between 2000 and 2019, consumption in the on-trade fell by 40 per cent.
“And many public health bodies recognise that pubs are often safer drinking environments than being at home.
“So, as the Members for Dudley South and North West Durham will agree, a fairer, healthier system supports pubs.”
Mr Sunak made the announcement as part of his bumper autumn Budget.
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Today’s changes also included an overhaul of the “outdated” alcohol duty system.
The “radical simplification” takes advantage of the Brexit and is designed around the principle of “the stronger the drink, the higher the rate”.
Lower strength drinks, including some beers, rose wines and fruit cider, will be taxed less – making it cheaper for customers.
The price of a pint will fall by 3p and the planned increase of duty on spirits will be cancelled.
Read our Budget 2021 live blog for live updates
Mr Sunak also revealed he will cut the 28 per cent premium on sparkling wines and the duty paid on fruit ciders.
But high strength booze – such as red wine, fortified wine and high-strength cider – will cost more under the reforms.
Key Budget announcements include:
- A wage boost for millions of public sector workers as the pay freeze is scrapped
- A freeze of HGV tax to help end the supply crisis
- A rise in the minimum wage to £9.50 in a hike for two million Brits
- A further £6bn to clear the NHS backlog that’s groaning after lockdown
- A new £5bn pot for research and development into health
- A £2bn boost to build houses on brownfield land equivalent to 2,000 footie pitches
- A £3bn skills funding with more bootcamp places for youngsters
- Half a billion pounds to sharpen up maths skills for 500,000 adults
- Funding for up to 8,000 new sports pitches and 300 scout huts
- A culture boost with £850m pumped into museums and galleries
- An extra £435m to cut crime with more CCTV, street lights and help for victims
- A further £700m to bolster border controls and fund a fleet to patrol migrant boats
Mr Sunak said: “The stronger the drink, the higher the rate.
“This means that some drinks will see a small increase in their rates because they are currently undertaxed given their strength.
“That’s the right thing to do, and it will help end the era of cheap, high-strength drinks which can harm public health and enable problem drinking.”