Julian Champions Pubs and Breweries Ahead of Spending Review
October 26, 2021
Ahead of tomorrow’s Spending Review, Julian has written to the Chancellor of the Exchequer Rishi Sunak MP renewing his calls for an overhaul in the way beer is taxed. Julian has long championed the need to reassess tax arrangements for pubs and feels the need to relieve the financial pressure on the sector is only greater as they emerge from the pandemic.
The UK has now lost over a quarter of the pubs that were open in 2001. While this long-term trend is in part due to a mixture of social changes and economic realities, the decline has been accelerated by a failure of successive governments to address the unreasonable tax burden most pubs face.
It is estimated that 1 in ever 3 pounds spent goes straight to the taxman, primarily through beer duty, business rates and VAT on food. Despite repeated freezes, UK beer duty remains at three-times the EU average. Paired with the fact that pubs are suffering from an outdated business rates model that no longer reflects modern consumer practices, the Government cannot avoid the urgent need for reform any longer.
Over the last year, Julian has repeatedly raised the issue with Ministers by asking Treasury Questions and joining 102 other MPs in writing to the Chancellor to reconsider changes to Small Breweries’ Relief in order to support the many fantastic small breweries in Yorkshire. He has also visited local brewery Ainsty Ales to hear the challenges breweries have faced in the last year and what they need to ensure they bounce back stronger than ever.
One key change to beer duty that Julian has passionately campaigned for is the establishment of a lower draught duty rate on beer served in pubs. This would offer relief to many local pubs and recognise them as valued community assets while addressing the imbalance with tax arrangements on alcohol purchased for much cheaper in supermarkets. Julian discussed his campaign with representatives from Heineken brewery earlier this year at the Derwent Arms in Osbaldwick.
After sending the letter, Julian commented:
“I really hope the Chancellor recognises that reform is long overdue and cannot wait any longer. The tax burden on pubs and breweries in York risks jobs and the loss of valued community assets.
We are fortunate to have such a fantastic array of pubs in our city, with many featuring in CAMRA’s Good Beer Guide, and I will always champion them in Parliament.”
