Pint tax is set to drop by a penny, but landlords are more worried than ever about the future of our oldest community spaces
Rachel Reeves, chancellor of the exchequer, has announced draught drinks will be taxed at a lower rate starting the first of February, but Penarth publican believes drinkers will pay more in the coming weeks due to hikes in other areas.
In her announcement to parliament on the budget Reeves stated there will be a drop of 1.7% tax on draught drinks under 8.5% vol. However, with rises in national insurance contributions, minimum wage hikes and business rates going up, pubs are at continued risk. Emma McClarkin, CEO of the British Beer and Pub Association said in a press release the budget will increase pub operating costs by over £11,000 on average.
Gary Webber, 63, landlord of The Clive Arms is also not convinced by the drop. “Keep all of it” says Webber when talking about the prime minister Keir Starmer’s government’s latest budget. “Fucking penny, he can stick it up his arse,” he said when told about the drop in draught alcohol tax.
Webber, a former builder, is trying to keep Penarth’s oldest pub going for his community and hasn’t welcomed any of the rises. “It will affect the business. It’s all gone up, gas, electric, it’s your staff’s wages too,” he told Alt.Cardiff.
Buying the freehold 15 years ago Webber explained he’s already struggling to keep the door open and isn’t sure what’s next for the pub, which will be soon celebrating its 170th birthday.
Webber is not alone. Chris Charters, director of The Campaign for Real Ale Wales, invited the first minister Eluned Morgan for a pint earlier this year to discuss the rising risk of pub closures in a letter published on the British Guild of Beer Writers website, “Business rates, rising prices and costs are all seriously impacting many community pubs’ ability to remain open.”