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
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Ruben Amorim addresses the latest round of redundancies at Manchester United
Danny Jones
Manchester United manager Ruben Amorim has addressed the most recent round of redundancies at Old Trafford and Carrington in his latest press conference as well as the club’s wider finances.
Speaking before a crucial clash against Spurs which has already been dubbed the ‘Calamatico’, with both teams struggling for form as their both Amorim and opposite number Ange Postecoglu remain hell-bent on sticking to their tactics, the 40-year-old was quizzed ahead of yet more layoffs within the business.
It was only last autumn that co-owner Sim Jim Ratcliffe and the INEOS Group made 250 employees redundant as one of his first major edicts in charge of the club and it is now being heavily reported that at least another 100 staff are set to lose their jobs if not more.
Although he wouldn’t be drawn into the discussion too much, Amorim did reflect on the evident and continued cost-cutting taking place around United and crucially argued that the talk of more redundancies is and should be on everyone’s minds.
🎥-🔴 Ruben Amorim on staff members losing their jobs
🗣️ “It’s really important for us in the first team, coaches and players, to not ignore that. People are losing their jobs so we have to acknowledge that the biggest problem is the football team.”
“I think it’s really important for us in the first team, coaches and players, to not ignore that,” he began. “People are losing their jobs so we have to acknowledge that the biggest problem is the football team.
“Because we spend the money, we are not winning; we’re not in the Champions League, so the revenues are not the same, and we spent a lot of money in the past so now we have to be careful with the finances.”
He goes on to say that while he and the board cannot rebuild the team the way they and the fans would no doubt like as a result of this, he reiterated that people losing employment is the most pressing concern and that a lack of job security is obviously going to affect the mood around the club.
United have lost over £300 million over the last three years, with large severance fees paid to the likes of Erik ten Hag when he was sacked, along with coaching staff.
Most notably, INEOS also let sporting director Dan Ashworth go just after paying a premium to hire him for just five months – a head-scratching decision which further rubbed supporters the wrong way after having just made 250 staff redundant.
“We cannot ignore [the redundancies]”, Amorim continued, adding that “the responsibility is on the first team and we have to change that.”
He went even further to add that in order “to change that, the first thing that we should do is to [beat] Tottenham – that is the small step to try to help these people, to try not to push the prices of the tickets higher.”
It’s the first time Amorim has spokenly openly about fan frustration following the £66 ticket price hike which was announced towards the end of 2024, and it seems he made it pretty clear what he thinks of it.
The job losses, targeting of concessions, reduction/removal of bonuses and limited activity in the January window United are just a reaction to the loss of income either.
United remains in large sums of debt and are said to still owe approximately £319m in unpaid transfer fees alone, so cutbacks were always going to happen, but Amorim clearly believes that the simplest thing he and his squad can do is still improve their fortunes on the pitch.
United fans will definitely be relieved to hear that Amorim aligns with their sentiment and was quick to hold himself and the players accountable for the impending redundancies and more, even if many missteps were before his time.
More importantly, everyone around the club seems to be in agreeance with one core, underlying factor: the performances just haven’t been good enough and business decisions aside, that has to be the priority in order for other aspects to improve in turn.
With United and Spurs 14th and 15th in the Premier League table, respectively, and both figures in the dugout under pressure, there’s a lot riding on Sunday’s fixture down in the capital.
You can watch the first half of Amorim’s pre-match press conference HERE and the previously embargoed section down below:
Featured Images — Manchester United (screenshot via YouTube)/The Manc Group
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New Lancashire Cricket investors aiming to make Manchester Originals as big as United and City
Danny Jones
Lancashire County Cricket’s new investors and Manchester Originals’ majority owners have stated their desire to make the local Hundred team as big as Man United and City.
The Originals were courted by the RPSG (Rising Pune Supergiant) Group this month, with the Goenka family agreeing to buy up a 70% share of the club after LCCC sold part of their stake in the franchise.
Famously in charge of the Lucknow Super Giants over in the Indian Premier League and their Durban equivalents in South Africa, the possibility of not just a shiny new kit but the Originals being renamed the ‘Manchester Super Giants’ isn’t out of the question, though it would be much further down the line.
Although the conglomerate was initially interested in one of The Hundred’s Southern teams, London Spirit – and they were quizzed on this in a press conference on Friday, 14 February – Vice Chairman Shaswat Goenka’s answer was simple: “Lords is Lords but Manchester is Manchester.”
Expressing a huge amount of respect and admiration for the city’s competitive history, even dubbing it a “sporting powerhouse”, Goenka began by insisting that the opportunity presented is one to build a perfect marriage of culture and a love for cricket.
Going on to identify sport as “one of the single biggest things that unites people across the world, regardless of race, colour” and so forth, he believes that while this is categorically not football, this new chapter could rival its prominence here in the UK and especially Manchester.
From there, he went so far as to argue that the stopping power is there and that RPSG “want the Manchester franchise in the Hundred to become the third biggest sports team in Manchester and challenge those two sports teams [Man City and Man United] in Manchester.”
Quite the statement indeed – but one that was echoed by his two new key collaborators in Lancashire’s CEO, Dan Gidney, and Manchester Originals Chair, James Sheridan.
Gidney in particular was visibly energised by the prospect, reflecting on the moment he realised a great potential after seeing the fanaticism shown by the crowd during India vs Pakistan at Emirates Old Trafford for the 2019 Cricket World Cup.
Even with new leadership, Lancashire Cricket will remain 30% owners of the Manchester Originals. (Credit: The Manc Group/Matt Eachus)
Waxing lyrical about seeing “just how much supporters celebrate a single game of cricket”, he said the goal is to “inject some of that passion into Manchester and LCC“.
Doubling down on Goenka’s statement, he continued: “We’re a bit conservative in the UK, we need to embrace the power of this sport; the fandom is off the scale – [it could be] stronger than the Premier League, in my opinion.”
All three executive speakers were also keen to reiterate that is by no means a complete takeover but rather a “joint venture” aiming to achieve a “true partnership” which could pose even more exciting cross-pollination in the future.
The consensus seems to be that further collaboration with the Super Giants is pretty inevitable and not just in regards to the men’s game but that this merging of brands presents a huge opportunity for young players and the women’s team too, the idea of players spending more time over in India and even some games perhaps being held still sounding very plausible.
Manchester Originals’ Chair, James Sheridan, did caveat the discussion by noting that “contracting isn’t straightforward in franchise cricket” but that conversations have at least started to take place” and, like Goenka, they don’t see this as a gamble but what is bound to be a “formidable partnership.”
He also reiterated the belief that Manchester is “probably the UK’s No 1 sporting city, adding “There you go, I said it”, and that the vision is to build the best team, the biggest fan base and the best culture – with this particular region being the perfect staging ground to do so.
The Manchester Originals Chair and LCCC Chief Exec welcome the incoming co-owners. (Credit: Supplied)
Two players were present for the press conference as well, with Originals Women’s star Beth Mooney saying she had “admired The Hundred for afar” since it started and quickly knew she “100% wanted to be a part of it”, aiming to “help create a legacy with the Originals as the tournament.”
Men’s player Phil Salt welcomed the new ownership as the start of an “extremely exciting new era” that should help them “bring the best product to the UK”, reiterating that “being part of the right organisation is key.”
Although the investment is yet to be fully ratified by the ECB (England and Wales Cricket Board) and Lancashire made no bones about the arrears they still have on the books, Gidney was keen to label a lot of as ‘good debt’ and an investment in facilities and infrastructure, something which RPSG will only further aid.
One of the biggest outlays even prior to the new co-owners is the ongoing Farrington project but since the wider county region may have struggled to cheer on a Manchester team, the Originals and Lancashire, more importantly, will no doubt benefit from its completion.
The new sister stadium will be based over in Preston, offering a second home for what is crucially a Lancashire club. (Credit: Supplied)