Chancellor Hammond announced a boost on rates for businesses
Cash strapped pub bosses and breweries have had their business rates slashed by the Chancellor in today's budget in a bid to boost the industry.
Mr Hammond announced he is to cut 90 per cent of all pubs’ bills by £1,000.
The Chancellor introduced a permanent annual discount for publicans up and down the country while at the same time freezing increases on a pint.
The £25million discount package announced will help to support almost one million UK jobs as the public struggles to cope with the rise in prices for everyday goods.
Mr Hammond said however that he would not hit smokers.
He said: “I am introducing a new minimum excise duty on cigarettes based on a pack price of £7.35…
“And I can also confirm that I will make no changes to previously planned upratings of duties on alcohol and tobacco”.
The BBPA commissioned Oxford Economics research group to look at the effect rises could have on the sector.
They revealed there would be ‘pot of gold’ for the Chancellor in raising beer duty.
The leading economic research organisation estimated that 5,300 jobs would likely be lost if the Chancellor raised duty, rather than cutting it by a penny, as done three times by George Osborne.
The duty freeze would safeguard 3,300 jobs, also at an exceptionally small net cost, of just £2 million, to the Treasury.
On Monday it was revealed Brits are paying more than their European counterparts for a pint of beer.
British Beer and Pub Association Chief Executive, Brigid Simmonds said: “Our beer taxes are already three times the EU average, and pubs face big new cost challenges this year.
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"British beer sales have stabilised since the abandonment of huge tax rises led to huge sales losses under the beer duty escalator. Any return to tax hikes would be a massive setback for the industry and the 900,000 people we employ.
“Instead, by continuing the sensible tax policy begun in 2013, the Chancellor can create confidence in this important sector, and bring cheer to pub-goers – and all at virtually no cost to the Treasury".
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