His words are still ringing in my ears, after another highly successful campaign from the industry. This year’s cut really was historic. There is no record of a Chancellor having cut beer duty twice in a row.
It shows something very significant. After years of campaigning, the Government’s understood our case, particularly the unique link between beer and pubs, and their huge impact on local jobs.
It demonstrates the Government understands that after five years of the duty escalator, UK beer duty had reached unsustainable levels.
The impact on jobs, in particular, is huge. This year’s duty cut will protect over 7,000 jobs. And they are mostly the jobs of younger people in pubs.
Cost headache
We are certainly still feeling the impact of the huge rises in duty from 2008 to 2013, up by 42%, but there is now a great climate for persuading the Government to look at beer duty over a much longer term. We have a strong case for beer duty cuts or freezes over a longer period. And with political parties turning to their election manifestos, work to secure this goal needs to start now.
However, as ever when it comes to taxes and regulatory burdens facing pubs, the next issue is always just around the corner. This is certainly the case with the Government’s proposals for licensing fees. As currently drafted, they present a major cost headache for pubs.
The proposed caps on fees are far too high. Plans to remove bands by rateable value could mean that a pub in band B (the most typical) will see its bill rocket from the current £180 to £740.
The potential for shock rises in bills must be avoided. Licensing authorities should be fully transparent and accountable when setting their fee levels.
Councils are certainly short of resources, but we need adequate safeguards to identify and prevent instances of ‘gold-plating’, unfairly increasing fee levels, particularly for our community pubs.
World Cup 2014
Finally, the World Cup. I have been working since last autumn to try to persuade the Government that extra hours for all pubs are badly needed.
Those efforts were unsuccessful at first, but eventually rewarded, with the Prime Minister intervening, and a consultation on extra hours. We made a strong case for the maximum, four hours after kick-off, to allow customers time to leave pubs in a safe way.
I was very pleased to see such a good response from licensees and delighted the Government listened.
Let’s hope the World Cup is the highlight of a great summer for pubs.