Drinks in the UK are set to become more expensive thanks to a new government system that will tax alcoholic drinks based on their strength.
The new system has been created with the intention of encouraging people to drink less but has received fierce criticism from hospitality groups who fear it will both fuel inflation and damage an already fragile industry.
The policy means that going forward wine in the UK will become more expensive as well as spirit mixers and cocktails, whilst champagne, sparkling wine and some low alcohol beer will become cheaper as a result.
Its introduction, however, comes at a time when the UK is experiencing record inflation in food and drink, with prices having hit a 45-year high of 19.2% in March 2023.
Current inflation on alcohol and tobacco products, meanwhile, was at 9.2 percent in June.
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However, despite criticism, the government has pressed ahead with the tax measure – with the Prime Minister hailing Brexit for making it all possible as he made a photocall at a Richmond brewery on Tuesday.
Rishi Sunak called the overhaul “the most radical simplification of alcohol duties for over 140 years” and was insistent that hard-up businesses and consumers will benefit from the change.
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The Prime Minister decided to break the news with a pint-pulling photo opportunity in a Richmond pub.
However, whilst Mr Sunak didn’t appear to have clocked the irony of the image it was soon pointed out to him by a heckler inside.
As he posed at Wensleydale brewery with a pint of Black Dub stout, an onlooker called out: “Prime minister, oh the irony that you’re raising alcohol duty on the day that you’re pulling a pint.”
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The announcement about price hikes on Tuesday coincided with the end of the freeze on alcohol duty, first announced by Chancellor Jeremy Hunt in March. As a result, alcohol prices are now set to increase with inflation at 10.1%.
The new tax measures mean that a bottle of wine will increase by 44p, but combined with VAT will mean consumers are paying an extra 53p per bottle.
The tax on gin and vodka bottles, meanwhile, will go up by around 90p, whilst duty on 18% cream sherry will go up by more than £1 and bottles of port are set to rise by more than £1.50.
At first glance, it appears there is some good news for beer drinkers who will see the duty cut by 11p a pint.
However, according to the British Beer and Pub Association (BBPA), because brewers will be required to pay 10.1% more tax on bottles and cans from 1 August their prices could rise to reflect this increase – as that new tax will make up around 30% of the cost of a 500ml bottle.
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Image: The Manc Eats
Image: The Manc Eats
The BBPA also said that the tax increase on packaged beer will add an extra £225 million of costs per year across the industry.
For Scotch Whisky, the cost is set to rise even more with Scotch Whisky Association director of strategy Graeme Littlejohn revealing the tax burden on an average bottle will rise to 75%.
He also said the move will leave distillers at a competitive disadvantage, stressing that “pubs and other on-trade businesses are about far more than beer and cider.”
Calling the 10.1% duty increase a ‘hammer blow for distillers and consumers’, he explained: “At a time when inflation has only just started to creep downwards, this tax increase will continue to fuel inflation and make it more difficult for the Scotch Whisky industry to invest in growth and job creation in Scotland and across the UK supply chain.
“Rather than choosing to back an industry which the UK government promised to support through the tax system, the government has chosen to impose the largest duty increase in almost half a century, increasing the cost of every bottle of Scotch Whisky sold in the UK by almost a pound and taking the tax burden on the average priced bottle to 75%.
“In a further blow, distillers will now face a further competitive disadvantage in pubs, restaurants and bars by being unfairly excluded from tax breaks available to beer and cider.
“Pubs and other on-trade businesses are about far more than beer and cider.”
The prime minister said: “I want to support the drinks and hospitality industries that are helping to grow the economy, and the consumers who enjoy the end result.
“Not only will today’s changes mean that that the price of your pint in the pub is protected, but it will also benefit thousands of businesses across the country.
“We have taken advantage of Brexit to simplify the duty system, to reduce the price of a pint, and to back British pubs.”
Featured image – The Manc Eats
News
Beloved plant-based independent street food business Herbivorous is set to close imminently
Danny Jones
We hate writing this, but we have news of yet another local hospitality closure as beloved Manchester-born and pioneering plant-based brand Herbivorous has confirmed they’ll soon be calling it a day.
If you can hear us sighing through the screen, apologies – we’re just getting really fed up of saying farewell to our favourites, so god knows how rubbish those involved feel.
As you can see, the team behind the multi-location vegan street food specialists began by writing: “It’s a long one so stay with me… It seems you can’t open social media at the moment without reading about another hospitality business closing down.
“Throughout 8 years of Herbivorous years we’ve come up against many challenges from Covid 5 years ago to watching all the big vegan brands from London and beyond come to Manchester and largely disappear again to the closure of Hatch our busiest site, but with continually increasing costs its becoming really difficult to maintain a thriving business.”
Herbivorous started out life back in 2016 as a cult hit at the old outdoor food, drink and entertainment hub centring around a ‘container village’, the first of its kind in the city and soon to reopen under new owners and a new name.
Since then, co-founders Robyn and Damian have gone on to expand not just to one permanent site over in Withington but with outposts in Sheffield and York, having gained a strong reputation with stalls and pop-ups all over.
Their hospitality story might not have the ending we personally would hope for, but it’s been a brilliant one for so many foodie fans – us lot included.
Nevertheless, they go on to add in the emotional statement that external pressures such as a recent bereavement and their own ever-growing family have also contributed to the decision which, despite being an understandably hard one, “feel like the right time.”
“We are so incredibly proud of how far we’ve come from spending long days slinging duck wraps from our green vintage horse box at festivals to three Herbi locations across the North of England”, they continue, “and with that we’ve also met so many fantastic people!”
“Whether you worked for us at a few festivals over [the] summer or for years at our restaurant, we just wanted to say and massive thank you! The memories will stay with us forever and, of course, how can we not mention our fabulous customers!
“Thank you all so much for choosing Herbivorous over the years. Those of you who had our food at Festivals and then found us at one of our permanent locations, those of you who came back week after week to Hatch, Spark, Withington and beyond.”
They signed off by detailing their final business days, with their Sheffield Kommune spot having already shut for refurbishment; meanwhile, their spot in SPARK York will be wrapping up on Saturday, 19 April.
As for their flagship brick-and-mortar venue here in Greater Manchester, Herbivorous Withington will be shutting on Friday, 25 April.
Once again, there’s nothing we can say other than thank you for years of delicious food, that we’re guttted to see you go, and that everyone at The Manc Group wishes you the best whatever comes next.
AJ Tracey is playing a VERY intimate gig in Manchester next month
Thomas Melia
London rapper and respected grime artist AJ Tracey is ‘live and direct’ once again, announcing a whole host of UK dates, one of which is a rather intimate gig right here in Manchester.
It’s official: one of UK rap’s leading gents is getting back on the road and he’s showing a ‘Little More Love’ to lots of cities, including Manchester.
In a post on the UK star’s socials, AJ Tracey trades his music persona for that of a sports pundit as he announces the dates for his upcoming tour while impersonating an F1 commentator.
Anyone looking to attend Tracey’s ‘Not Even A Tour’ can catch the star up and down the country on his over 20-date tour with a stop in Manchester as soon as this month.
The rapper has reached phenomenal heights since dropping the unforgettable ‘Ladbroke Grove’ in 2019 and is heading out across the nation to make sure everyone knows about it.
Get ready to spit bars left and right as this rapper’s discography is stacked with serious tunes like ‘Dinner Guest’, ‘West Ten’, ‘Thiago Silva’ and more.
More recently, he collaborated with Walsall’s finest Jorja Smith for a flirty garage beat also known as ‘Crush’ with the video being the two artists talking it out in a good old fashioned caff.
The latest collaboration with Smith marks the start of a new era for Mr. Live and direct as it fell in line with the announcement of his third studio album.
Titled Don’t Die Before You’re Dead, we’re sure he’ll be “building a vibe” wherever he goes and probably previewing a few exclusive tracks from his upcoming project too.
This gig may come as quite a surprise for any hardcore fans of the ‘Ladbroke Grove’ star as the venue in which he’s performing is definitely intimate only, holding just over 250 guests.
This rap giant is bringing his unbelievable beats to none other than the legendary small-cap city centre live music venue, The Deaf Institute, at the end of this month.
It’s safe to say you won’t get many more chances, if any, to see him in such a tight-knit space again.
AJ Tracey is bringing ‘Not Even A Tour’ to Deaf Institute in Manchester on 30 April, with tickets on sale Friday 4 April from 12 noon.