Budget 2014: Pubcos pass on beer duty cut
Chancellor George Osborne said yesterday that beer duty would be cut by 1p per pint, for the second year running, while duty on alcohol would rise with inflation with the exception of Scotch whisky and other spirits and “ordinary cider”, where it will be frozen.
Admiral Taverns has already written a letter to its licensees stating it will pass on these reductions, which will see tenants pay less for draught and packaged beers, but there will be no changes to the cost of ciders, flavoured alcoholic beverages and spirits. The changes will take effect from deliveries from Monday 24 March 2014.
Greene King chief executive Rooney Anand also announced that the cut will be passed onto its “hard-working licensees immediately” and will facilitate more investment and employment.
He added: “If this leads to further cuts going forward then it could provide significant help to stem the tide of pub closures.”
Punch Taverns commercial director John Healy said once the pubco receives the details from suppliers on all duty changes it will communicate to its licensees how it will pass these on in full.
Enterprise Inns chief executive Simon Townsend sent a letter to publicans confirming the reduction in duty would come into effect from Monday. The letter said the approximate impact of the duty cut would see a 76p reduction on an 11g container of 4.0% ABV beer (equivalent to 1p per pint); no increase on a case of 12 x 568ml bottles of a 4.5% ABV cider; no increase on a 70cl bottle of a 37.5% ABV vodka and a 5p increase on a 75cl bottle for a 12% ABV still wine.
Furthermore, Carlsberg UK said it would also be implementing revised trade prices reflecting beer duty reductions with effect from midnight, Sunday 23 March.
