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
30 years ago, the IRA detonated a 1,500kg lorry bomb on Corporation Street in the heart of Manchester – here’s the story
Georgina Pellant
Today marks three whole decades since an explosion from the inside of a lorry parked on Corporation Street shattered windows and destroyed buildings across the city centre.
Causing an evisceration that stretched for miles, when the 1,500 kilogram IRA bomb went off in 1996, it was the biggest detonation in Great Britain since the Second World War.
Following the explosion, the city fell silent – leaving rack, rubble and ruin in its wake. Famously, one red post box was left standing – today fitted with a memorial plaque in remembrance of the tragedy.
It seems scary to think that back then, most people could only stand there, watch on and worry.
The bomb caused an estimated £700 million worth of damage to Manchester’s infrastructure and economy, and over a quarter of a century later, locals still tell the stories of where they were when it went off – and of the devastation it left behind.
Notably, one resident of the Cromford Court maisonettes on top of the Arndale – a 77-year-old RAF veteran suffering from the flu – didn’t even bother to get up when the telephone warning to evacuate hit, considering himself to have survived much worse feats during his time in military service.
Having been a rear gunner in a Lancaster in the war, he reportedly told police and authorities “he was buggered if he was going to let a small bomb affect him.”
In subsequent years, Danny O’Neill has become a part of an urban legend surrounding the bomb as his staggering story has been told time and time again.
Around 90 minutes prior to the detonation, the Provisional Irish Republican Army had telephoned in warnings – meaning that around 75,000 people were able to be evacuated from the area before the bomb went off from the back of a van.
However, the bomb squad were unable to defuse it in time, leading to over 200 injuries from people still left in the area.
Thankfully, despite those injuries, there were no fatalities, and many of those reported traumas came from the shattering of thousands of windows and other damage to buildings in which unsuspecting people were getting on with their days.
Several buildings near the explosion were damaged beyond repair and had to be demolished, while many more were closed for months for structural repairs, and this prompted the biggest regeneration of Manchester city centre ever – something that is still continuing to this day, arguably at a more rapid rate than ever.
The city lay dormant for days after the explosion, as people came to terms with what had happened and kept their distance. Many moved out of the centre for a period of time, while many more simply decided not to visit for fear of another incident.
It was a desolate place, eerily quiet, and in need of some serious TLC.
According to Home Office statistics, an estimated 400 businesses within half a mile (0.8 km) of the 1996 blast were affected, 40% of which did not recover.
Credit: Manchester Libraries
Market Street – near the explosion and at that time the second-busiest shopping street in the UK – was considered by some a “fearful” place, and one that was to be “avoided like the plague”.
The prospect of pulling Manchester’s bustling city centre out of its darkest depression was not casually approached by those in charge.
It was acknowledged as a mammoth task from the get-go, but Greater Manchester has never let anything get in its way. Despite how steep the hill is that we’re standing at the base of, we always manage to reach the peak, ready to go again.
Manchester City Council green-light new venue at Medlock Square, with Mamma Mia! The Party to open the immersive space
Danny Jones
The smash-hit ‘Mamma Mia: The Party’ is set to land in Manchester next year as the maiden event of another brand-new space set to open as part of the upcoming Medlock Square development.
Etihad Campus has seen a lot of moving pieces over the past few years, be it the building of Co-op Live, the ongoing expansion of Man City’s home ground, the soon-to-launch hotel attached to the stadium and now Medlock.
But those in control of the land are content with stopping there; this looks to be just the start of a whole new evolution for the East Manchester area, with an as yet untitled new immersive arts, experience and events venue also set to join the new slate of projects.
You see another glimpse of the purpose-built mini arena, of sorts, down below.
With plans having now been approved by the City Council, the ‘immersive’ space will be situated between the Etihad, Co-op Live and Medlock Square itself, holding up to 600 guests per performance.
Currently set to open in late 2027, following the rest of the square’s launch window being fully rolled out, we still don’t know the name of this next addition, but the structure itself will dovetail with the surrounding buildings and areas as part of seasonal activations, live shows and sports screenings, as well as pop-ups, brand collaborations and more.
Looping back, the interactive, multimedia extravaganza that is ‘Mamma Mia! The Party’ will finally be making its Manc debut as part of the 10th anniversary of the all-singing, all-dancing and even all-dining in-demand production.
As per an official press release from the Medlock Square media team, the show will combine “live music, theatre, food and storytelling” and “offer visitors an unforgettable night out.”
The original UK production at The O2 in London has now surpassed more than 1,500 performances, with a total of 700k guests attending these shows in 110 countries across the globe. Safe to say it’s rather popular.
As for Medlock Square and the surrounding Etihad Campus, Manchester City supporters have also been given another look at the soon-to-open, immersive hotel tie-in experience.
With a skywalk, rooftop bar, a new MCFC shop and various other bits set to spill out onto Medlock Square, it all feels like a period of wholesale changes over in the blue half of the city – especially with the football club bidding farewell to their manager Pep Guardiola after more than a decade.
Following the new and improved North Stand being named after him in the first of many tributes, the City Football Group (CFG) are also set to commission a statue in his honour over the coming months.
Meanwhile, Medlock Square is also due to open later this year, although an official completion date has not been confirmed.
You can stay up to date with all the latest on Mamma Mia! The Part’s Manchester shows right HERE.
Not forgetting a brand-new women’s football facility, too, there is so much stuff going on over at the Etihad that it can be hard to keep track, but here’s the latest look at some of the rooms set to feature in the hotel of the same name.
Georgina Pellant -
2nd August 2023 
