Brexit Pub Guarantee: A real Brexit dividend at last
Alison Horner · March 16th 2023 · read
Following the Chancellor’s Spring Budget on Wednesday 15 March, Alison Horner, VAT partner at MHA, says the Brexit Pub Guarantee is one of the few tangible Brexit dividends for the hospitality sector.
Since 2000 there has been a consistent decline in the number of pubs in the UK, from 60,000 in 2000 to 46,350 in 2021. The new relief specific to draughts drinks will help to stem the tide of pub and social club closures, although the cost of a pint will continue to increase. This was a measure that resulted from campaigns by organizations such as the Campaign for Real Ale (CAMRA), who have highlighted the plight of UK pubs.
From the 1 August 2023, the new alcohol duty tax relief for draught drinks, such as beers and ciders, served in UK pubs, taprooms and social clubs means duty will be up to 11p lower than that imposed on supermarket sales.
Following Brexit, the UK can now manage its own legislation on excise duties rather than follow EU regulations. As such, this allows for these, albeit temporary, measures on alcohol duty. Due to the recent agreement between the UK and EU, known as the Windsor Framework, this relief will also be applied to all pubs in Northern Ireland.
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