The Chancellor announced his first and last Spring Budget on 8th March 2017. There were a number of measures announced that will impact upon the brewing and pub industry.
Beer and alcohol duties
– All alcohol duties were increased by inflation (c.3.9%)
– Beer duty was increased by 2 pence per pint (to £19.08/hl/% abv)
– This was announced as no change on previous policy
– The Government will also consult on:
– introducing a new duty band for still cider just below 7.5%
abv to target white ciders
– the impacts of introducing a new duty band for still wine and
made-wine between 5.5% and 8.5% abv
Business rates
– A pub-specific relief of £1,000 per pub for 2017 was announced for pubs with an RV of £100,000 or
less
– Further transition for businesses that have moved out of paying Small Business Rate Relief (SBRR) so that in the first year they will pay no more than £600 per year; and in subsequent years will pay the higher of £600 or the respective transitional relief cap
– A pot of money for local authorities to support those businesses that had seen the biggest increases in their business rates bills. This was announced as £300 million – £180 million in 2017/18; £85 million in 2018/19; £35 million in 2019/20; and £5 million in 2020/21. It is not yet clear how this would operate.
– Government will set out its preferred method for more frequent revaluations at Autumn Budget 2017 and consult before the next revaluation in 2022.
– In the ‘medium-term’ Government will look to find a better way of taxing the digital economy, the part that does not use bricks and mortar.
Announcements were also made regarding the Soft Drinks Industry Levy, digital administration, personal taxation and accommodation allowance.