A 1p cut in the Alcohol Duty per pint of draught beer is not enough to stop the decline in British pubs, the industry has said.
The pubs - a vital part of the Category C machine market - are closing at a rate of 500 each year, says the British Beer and Pub Association, and are now faced with extra costs with the increase in the minimum wage and employer national insurance.
The Budget saw a 1.7 per cent cut in the tax applied to the production of draught alcohol as well, but nevertheless the other costs facing pub chains will inevitably mean the cost of drinks with rise and put still more pressure on the margins for pubs.
Tim Martin, CEO at Wetherspoons, said last week at the company’s AGM that higher employment costs will hit his group to the tune of £80m each year.
