Independent pubs ‘not convinced’ they will benefit from alcohol duty change

The body which represents independent pubs and bars in Scotland has said it is “not convinced” they will see benefits from alcohol duty changes which came into effect on Tuesday.

The Scottish Licensed Trade Association (SLTA) said the changes will instead benefit big producers and chain pubs.

The changes mean taxes are now based on the alcoholic strength of the drink.

Pubs in the UK will also receive Draught Relief, freezing or cutting duty on drinks poured from taps.

The UK Government says its “Brexit Pubs Guarantee” means duty will always be less in pubs than in supermarkets.

Paul Waterson, SLTA spokesman, said: “We are not convinced that this change in draft beer and cider duty will help us or our customers in any way.

“For the Chancellor to say this cut in draft beer duty is a ‘Brexit Pub Guarantee’ is as naive as it is fanciful.

“We know from experience that we don’t benefit from cuts to alcohol duty because the duty is paid by producers, who do not adjust their prices down accordingly when selling to us.

“It is a system designed to benefit the producers and the big pub companies.

“They are able to negotiate price discounts whereas smaller independent operators, such as our members, do not have that power.”

The Treasury has said more than 38,000 UK pubs will benefit from tax relief that effectively freezes or cuts the alcohol duty on beer poured from tap from Tuesday.

Chancellor Jeremy Hunt said earlier: “British pubs are the beating heart of our communities and as they face rising costs, we’re doing all we can to help them out.

“Through our Brexit Pubs Guarantee, we’re protecting the price of a pint.

“The changes we’re making to the way we tax alcohol catapults us into the 21st century, reflecting the popularity of low alcohol drinks and boosting growth in the sector by supporting small producers financially.”