Nearly 40,000 pubs facing rising costs will receive a tax saving from today when a six-month alcohol duty freeze takes effect.
Hospitality venues have struggled since the Coronavirus pandemic when they were forced to shut for months at a time. Inflation and rising costs have also led to closures.
In 2023, 1,641 companies went into administration, with 190 of those from the hospitality sector.
This marks a 22 per cent increase compared to the previous year and a 91 per cent rise compared to 2021.
It forms part of a multi-billion support package announced by Chancellor Jeremy Hunt in his Autumn Statement which also included £4.3 billion business rates relief.
Andy Slee, chief executive of the Society of Independent Brewers said: “While trading has been tough for pubs and independent breweries, the Government’s continued support is very welcome.
“The beer duty freeze for six months provides some certainty for brewers as the new alcohol duty system is embedded.
“As part of this, the Government introduced Draught Relief allowing beer destined for the pub to have a lower rate – and already there are signs that this is working to support pubs.”
Meanwhile businesses have urged unions to consider the “far-reaching consequences” of rail strikes as the hospitality sector warned over a hit of up to £350 million from the latest walkouts.
The Night Time Industries Association (NTIA) warned it was “deeply concerned” about the “significant repercussions” that recent industrial action – organised by the train drivers’ union Aslef – will have on the night-time business economy.
Trade association UKHospitality estimates that the current train strikes will cost the sector up to another £350 million, which comes as swathes of firms in the industry are already being forced to close their doors.
Gareth Davies, Exchequer Secretary to the Treasury, said: “The great British pub remains a critical part of communities across the country, that’s why we’re helping to keep costs low by freezing alcohol duty, reducing business rates, and supporting on energy costs.
“Our decisive action has also helped to more than halve inflation last year, protecting pubs and other businesses from the higher costs they would have otherwise faced.
“And we need to stick to our plan, so we can deliver the long-term change our country needs to deliver a brighter future for Britain, and improve economic security and opportunity for everyone.”
The alcohol duty freeze will be in effect until August 1.
