Sunderland pubs and brewers react to changes in the Budget

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Brewers and pubs in Sunderland have been reacting to changes set out in the first Labour Budget for 15 years.

Maxim Brewery's Mark Anderson and Pub Culture, operators of the Dun Cow, have given their views on the Budget.Maxim Brewery's Mark Anderson and Pub Culture, operators of the Dun Cow, have given their views on the Budget.
Maxim Brewery's Mark Anderson and Pub Culture, operators of the Dun Cow, have given their views on the Budget. | Sunderland Echo

They have given a cautious response to the Echo. A brewery boss has welcomed some aspects, but still predicts a rise in the price of a pint despite a tax cut on draught.

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Chancellor Rachel Reeves announced that tax on draught drinks will be cut by 1.7%, but non-draught alcoholic drinks will increase by the higher Retail Price Index (RPI) measure of inflation, which dropped in September to 2.7%.

Those changes are effective from February 1, 2025.

Businesses will be affected by a 1.2% rise to 15% on National Insurance as part of a raft of tax increases, which Ms Reeves says are necessary to fill a £22billion financial "black hole" left by the previous Conservative government, something the Tories vigorously dispute.

The National Minimum Wage rises for those aged 21 and over from £11.44 to £12.21 per hour from April, with rises for younger workers too.

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Mark Anderson is managing director of the Houghton-based Maxim Brewery, whose products include Double Maxim.

"Trying to work through some of the details of the Budget is a bit complicated,” he said.

"The good news is that it looks as though draught beer duty is going to be reduced, but increased for bottles and cans.

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"Some of the comments on duty in the Budget suggest that smaller brewers might benefit from increased allowances as well. Until the full details are known, it's quite difficult to say.

"What is in there is some recognition that the Government wants to support small brewers and look a potential guest beer-type arrangement into pubs.

"The devil's in the detail. The duty element is only one part of the overall cost to a brewery like ourselves.

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“By the time we've factored in a National Insurance increase, a wage increase and higher raw material costs, people won't see the price of a pint coming down.

“More likely it will go up by anything from 5p-10p, unfortunately.

“That's my quick guess at the moment, because we have to work through the numbers when we have all the details from the Treasury."

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Rhys McKinnell is CEO of Pub Culture, operators of The Fire Station, The Engine Room and The Dun Cow.

He said: “We’re pleased to see the Government will continue offering business rates relief to the hospitality industry and have committed to reform the business rates protocol.

"The rates relief has been a valuable lifeline for us and many other hospitality businesses in recent years and long-term reform will only benefit our high streets.

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“The uprate in alcohol duty in line with RPI also shows the Government recognises the value of on trade premises like ours.

“While the National Minimum Wage change represents another increased cost for us and will be challenging, we’re pleased those that are in need the most are being supported by the Government.

"As an organisation we already pay all colleagues over 18 the over 21 rate of pay and pride ourselves on paying the best rates we can afford - they are so important to our business.”

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Ash Corbett-Collins, chairman of CAMRA, has said: “Despite general rises in alcohol duty next year, CAMRA is pleased to see the Chancellor’s decision to cut the rate of tax specifically on beer and cider served in pubs, clubs and taprooms.

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