Warning over ‘disaster’ price rises as government told ‘save our pubs’

Alcohol bosses are demanding a cut in alcohol tax in Rachel Reeves’ first Budget speech as Chancellor of the Exchequer. They claim this may be the only way to save Britain’s pubs after “disaster” price hikes were forced onto customers last year.

The drinks industry is pleading with Chancellor Reeves to stick to her election promise to protect the cost of booze. She had even joined The Sun’s Save Our Sups campaign and told the outlet: “Brits love our locals. Let’s back our landlords to keep our pubs going.”

At the Spring Budget in 2023, the government announced that the duty rates structure for alcohol products would be revised and increase in line with Retail Price Index. This change was implemented last August.

This also ended a blanket freeze on the levy rates and saw alcohol products getting a whopping 10.1% hike. As a result, many booze bosses pushed the cost onto customers which has since seen a turning sentiment towards one of Britain’s most iconic past times.

Mark Kent, Chief Executive of the Scotch Whisky Association, branded the hike “a disaster”. He claimed: "It’s hurt business and penalised consumers,” as he told The Sun.

Analysis revealed further price increases could cost the Treasury £35million in lost revenue as people avoid their local pubs. Megha Khanna of the UK Spirits Alliance told the outlet that cutting alcohol duty could not just help booze bosses but also help plug the “serious financial blackhole” the Chancellor is dealing with.