Beer tax duty cut welcomed with open arms by UK licensed sector
It is hardly a well-kept secret that the licensed sector in the UK has been struggling within the last decade. Pubs up and down the country have been struggling with overheads, dwindling consumer figures and increased competition from the emergence of chains.
As a result, the coalition government’s decision to cut the price of a pint by 1p will have been greeted warmly by landlords and breweries all over Britain. It represents a welcome respite for embattled pubs that will have needed a break of this nature to help them thrive once again and contribute positively to the economy.
Brigid Simmonds, chief executive of the British Beer & Pub Association (BBPA), was instrumental in negotiating some breathing space for the sector. She worked alongside senior ministers on the decision and was keen to point out that the measure is not something that will actually cost the exchequer any money.
"Beer tax rises have been so extreme that a tax freeze wouldn't even cost the Treasury any revenue. With more buoyant beer sales, and the protection of 5,000 jobs, mostly in pubs, the measure would pay for itself," suggested Simmonds.
Potential economic boost
The coalition government will undoubtedly hope that such a move encourages consumers to spend an increasing amount of money in pubs and restaurants across the UK. The licensed sector has traditionally been a consistently positive contributor to the economy and this new measure may help to kick-start the industry.
Business advice specialists
At Moorfields, we have a vast amount of experience in the licensed sector, working with breweries, pubs, hotels and nightclubs to ease them through any financial difficulties. We have a close working relationship with experienced pub operators and banks, that are active in this industry sector,, helping us to find a suitable financial resolution for struggling units, including helping you work through business rescue options.
If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.