The Chancellor’s Budget turned out to be a mixed bag for hospitality, the headlines grabbed attention, but as always, the small print makes the real difference.
In Parliament the Chancellor announced that more than 90% of hospitality businesses would benefit from a 50% reduction in their business rates bills in 2022-23, the reduction however is limited to £110,000 per business.
For small independents that make up the majority of hospitality businesses this is significant, but for multiple site operators less so, and diminishes as the number of outlets increase.
It also applies nationally, so areas like London with far higher business rates will continue to see high bills. A weighting system would have been helpful.
Rishi Sunak also announced more frequent rates revaluations, down from every five years to three.
Alcoholic drinks will be taxed in line with their alcohol content and reduced from 15 to 6 categories.
What the Chancellor labelled as his “draught relief” will see a 3p per pint served cut in beer duty, but only through sales from breweries using kegs of more than 40 litres, leading smaller brewers to fear they will not qualify. Most smaller breweries use 30 litre kegs.
This difference prompted the Society of Independent Brewers to campaign for relief to containers of more than 20 litres.
The Society of Independent Brewers Chief executive James Calder, said: “We look forward to working with the Treasury as they implement this landmark policy. By amending this lower threshold to 20 litres the Treasury can ensure all independent breweries benefit from this welcome new duty relief on draught beer.”
Drink producers will see an overhaul of alcohol duty that rewards lower-strength drinks, English wine producers are set to benefit as they tend to appeal to low ABV customers.
For all too many hospitality businesses still struggling to cope with the pandemic’s impact to date, it looks like too little to face the immediate future with effectively.
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Hospitality & Catering News: Hospitality Budget 2021. – 28 October 2021 – Hospitality Budget 2021.
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