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
‘Stunning’ Old Rectory pub in Stockport suffers permanent closure
Danny Jones
One of Stockport town centre’s most beautiful pub venues, The Old Rectory, has officially closed down permanently following notices about its “final stages”.
Built circa 1740, the historic space itself has been there since before the Regency period.
Stockport‘s Old Rectory pub on Churchgate has been a number of different things over the decades, and has changed hands multiple times in more recent years, but now the Greene King site has shut down, what seems like, for good.
In fact, if you look online, it is already listed as ‘permanently closed’ on Google, as does a temporary sign now stuck to the gates of their entrance, with the most recent service last week being their final one.
With the news having since been shared on the Stockport Tourism notice board on Facebook, a post from the ‘Old Rec’ team reads: “We are sad to announce that The Old Rectory will be closing its doors at the end of this month. Thank you to everyone who has visited and supported the venue over the years.”
An update has also now been shared on the official CAMRA (Campaign for Real Ale) website.
Issuing a statement directly to The Manc, a spokesperson for Greene King said: “Following a period of team member consultation, we can confirm that the Old Rectory has now closed.
“We are grateful to everyone who has supported the Old Rectory over the years, and we look forward to welcoming them into our other pubs in the local area soon.”
They also go on to assure that they have worked with the team members who have sadly been put out of work to try and find new positions at other locations, with the operators urging Stopfordians to try other nearby pubs such as Gardeners Arms in Offerton and the recently refurbished Carousel in Reddish.
Described by CAMRA as a “multi-roomed pub-restaurant that still maintains a country house feel with plenty of dark wood and plush décor”, not to mention praising the all-day food service and “top notch” beer selection, its heyday may have been long ago, but it’ll still be missed by regulars and natives.
It’s also worth noting that the former Hungry Horse public house also long-served as an accommodation spot, too, with Premier Inn’s ‘Stockport Central Hotel’ attached to the back of the building.
There are no updates on this front at present, and they could easily repurpose what natives have hailed as a “stunning” Georgian structure – not to mention the expansive garden grounds – but the company is also currently cutting more than 3,800 jobs as part of a wider savings strategy.
Elsewhere, as SK residents bid goodbye to one veteran pub, they’re also gearing up to welcome back another former favourite…
Sacha Lord set to back local hospitality again with money behind the bar of Manchester pub
Danny Jones
Local figure Sacha Lord is once again looking to help support Greater Manchester’s food and drink scene once again this spring by putting a total of £2.5k behind the bar of one lucky pub.
Well, let’s be honest, we’re about to be the real lucky ones.
It’s far from the first time that the Night Time Economy Advisor has done this, having previously put sizeable sums towards shared tabs on a few occasions over the last few years.
Lining up his next handout for this coming early May bank holiday (perfect timing), it’s going to be a super and potentially very sloppy Sunday…
Tell me your favourite pub in Greater Manchester.
Bank Holiday Sunday 3rd May, I’ll be turning up and putting £2500 behind the bar.
Sharing the video above online earlier this week, the 54-year-old simply wrote, “Tell me your favourite pub in Greater Manchester. Bank Holiday Sunday, 3rd May, I’ll be turning up and putting £2500 behind the bar.”
The message is as straightforward as ever: “Support your local pub.”
Now obviously, the fact that people can reply with their go-to boozers and help influence the decision is one thing – something that has certainly always created an attraction each time he’s done this – but it’s also just a good way of marketing these watering holes to begin with.
Whether or not someone’s favourite public house tucked away in one of the 10 boroughs, or their bar of choice here in Manchester city centre, ends up being selected or not, it’s obviously great publicity having their names plastered on a notable social media account.
This is especially so when you see how much the post itself ends up being reshared and the overall exposure Lord ultimately lends them via creating such a big crowd discussion.
Confirming the chosen pub in a subsequent post, he said: “I asked you to choose a pub you wanted me to support. This Sunday, 4pm, I’ll be turning up at The Ape and Apple on John Dalton St, Manchester, and putting £2500 behind the bar.”
Here’s hoping we get proper beer garden weather over that long weekend – especially with that lovely refurbished outdoor terrace space up on the first floor of the Joseph Holt watering hole.
It’s also worth noting that the further support stunts like this have helped garner support for other regional businesses – in particular, indies that are battling the cost of living crisis and so many other challenges within the sector – has proved crucial for some places to stay open to begin with.
A good example is the Thirsty Korean, who teamed up with the Altrincham-born entrepreneur to cover hundreds of bills back in 2023, and has now been able to expand into a larger venue down the road from their original Chorlton location.
The obstacles facing the hospitality industry remain varied and numerous, but gestures like this can go a long way to helping prop up those who need it.
Which ones are you calling your favourites these days?
Georgina Pellant -
2nd August 2023 
