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Budget Beer Duty Cut And Pub Business Rates Relief

Financial Times Companies •
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For decades, British prime ministers have avoided announcing small policies, fearing ridicule. Andy Burnham has embraced "everyday fixes" as a key tactic ahead of a Wednesday Budget when money will be short. This week, the Prime Minister announced a crackdown on music on public transport, "rip-off" private parking fines, and ending fees for children to sit with parents on planes. Tory leader Kemi Badenoch has derided these as "tiny bits of micro-policy" while Burnham calls them "everyday fixes," noting voter approval.

The pub sector expects Chancellor John Healey to announce a cut to draft beer duty and a 20 per cent reduction in pub business rates. The Treasury declined to comment. This move would benefit pubs over supermarkets, which landlords blame for poaching punters with cheaper alcohol. Previous chancellors have used beer duty changes to curry public favor or face backlash.

George Osborne once took a penny off beer duty to rebuild his reputation after the 2012 "omnishambles" Budget, earning the title "beer drinker of the year." In contrast, Alistair Darling was barred from Edinburgh pubs after raising alcohol duty in 2008. Gordon Brown introduced a special regime for microbreweries that transformed the industry. Sir Jeremy Hunt froze alcohol duties in 2023 to satisfy restless Tory MPs. Rachel Reeves cut alcohol duty by 1.7 per cent in 2024 but called it "not a game-changer."

Source: Financial Times Companies · Summarized by HeadlinesBriefing