PUNTERS could soon be hammered by a hefty price hike on a pint of beer following Labour’s ‘sin tax’ raid.
Chancellor Rachel Reeves is reportedly considering lifting the price of a pint of beer or cider, and a shot of spirits, as well as increasing the levy on a packet of cigarettes.
Smokers and drinkers face being clobbered in a Budget ‘sin tax’ raid to boost Treasury coffers[/caption]
Health Secretary Wes Streeting — who has previously insisted he’s not the ‘fun police’ — called for a national debate on an outdoor smoking ban[/caption]
The move would be a crushing blow for beleaguered boozers as well as tight-fisted pub goers.
The potential five per cent beer duty hike would lift the cost of a pint by 2.45p.
If struggling publicans take on the burden their profit per pint drops from 12p to 9.55p.
The average price for a pint in the UK currently costs £5, a report previously found.
Unsurprisingly, London has the most expensive pint in the country, with the average one costing a frightening £7.15, meaning residents in the Big Smoke could soon be set back close to a tenner for a pint of lager or cider.
Belfast, at £6.71, and Brighton and Hove, at £6.60, came in at second and third respectively, according to recent research.
Currently 35 per cent of hospitality businesses are not making a profit and some 500 pubs shut for good last year alone.
Meanwhile, the pub and brewery sector contributes £26.2billion to the UK economy and also generates £15.1billion in tax.
Emma McClarkin, chief of the British Beer and Pub Association, said any plan to further hurt pubs will be a “bitter blow”.
She said: “After the Chancellor’s pre-election promise of a five point plan for pubs, it is impossible to see how this will be fulfilled if the price of a pint is increased by the Government.
“The cost of doing business has soared in recent years and, with potentially new punishing burdens, this tax increase is the last thing pubs and beer drinkers need.”
On the other hand, the BBPA estimates a five per cent drop in beer duty would create an extra 12,000 jobs.
Ms McClarkin also wants Ms Reeves to maintain 75 per cent business rates relief and said: “Anything less will be a total betrayal of the great British pub that this Government promised to protect, and the one million jobs that depend on them.”
Brian Perkins, CEO of Budweiser Brewing Group UK, said: “Rather than increasing beer duty, the new Government should support our struggling brewing and hospitality sectors by cutting beer duty.
“The average British pint is already taxed twelve times more than on the continent.”
Mark Kent, of the Scotch Whisky Association, said: “A further duty increase would be a hammer blow.”
“It would serve no economic purpose to increase duty on spirits, with a £300m reduction in revenue since the duty increase last year by the outgoing government.
“We need a change in direction from the new Chancellor.”
Tough on NHS
WES Streeting has defended his recent criticism of the NHS, insisting only urgent reform can save the struggling service.
The Health Secretary made it clear he will not be swayed by critics, after anonymous NHS insiders told the BBC of “growing unease” over the Government’s messaging.
He told the Labour Party conference yesterday that not acknowledging the problems in the NHS would result in “killing it with kindness”.
Mr Streeting said: “I know the doctor’s diagnosis can sometimes be hard to hear.
“But if you don’t have an accurate diagnosis, you won’t provide the correct prescription.
“And when you put protecting its reputation above protecting patients, you’re not helping the NHS, you’re killing it with kindness.
“I won’t back down. The NHS is broken, but it’s not beaten, and together we will turn it around.”
His comments come after senior people in the health service expressed unease over Labour’s tough talk.
One hospital chief told the BBC harsh rhetoric could spook patients and crush staff morale. He added: “Hope is important.”
In recent weeks, the Government has claimed cancer is a “death sentence” due to NHS failings, while maternity services “shame” Britain.
By Martina Bet
Ahead of the election Ms Reeves championed local pubs.
She said: “Brits love our locals. Let’s back our landlords to keep our pubs going. We want to save the British pub because I know what an important institution they are in so many communities.”
At the Budget in March, then Tory Chancellor Jeremy Hunt said alcohol duty — which was due to rise by three per cent in August — would stay frozen to February 2025.
But tobacco duty went up by £2 per 100 cigarettes in a one-off increase which ensured vaping was cheaper.
Sir Keir Starmer has vowed to act to reduce 88,000 smoking-related deaths every year.
There is already anger at proposal to ban smoking in pub beer gardens.
Mr Streeting told Sky News yesterday: “We definitely want to see smoking phased out in our country, we committed to that in our manifesto. I’m considering, and I’m up for a national debate on this issue.
“We’re becoming sicker sooner and there is a heavy price being paid for that in our economy, our public finances and our health.”
Addressing a booze and fag duty hike, a Whitehall source told The Sun: “The budget has not been decided, there’s a long way to go before the package is finalised.”
One Treasury source tried to play down the move saying: “Sounds like a load of classic pre-Budget speculation to me.”
And a Treasury spokesman added: “We do not comment on speculation around tax changes outside of fiscal events.”
