Chancellor Jeremy Hunt has announced that from today, pints and other drinks on tap in over 38,000 UK pubs will be up to 11p cheaper than supermarket equivalents.
Mr Hunt hailed the move, first announced in his Spring Statement, as evidence Brexit is helping Brits enjoy cheaper nights out amid the cost of living squeeze.
Visiting a popular watering hole near the Treasury, Mr Hunt said the announcement was “really positive” and will “help pubs keep their heads above water”.
Under Brussels rules it was illegal for the duty rate on beer and cider sold in the supermarket to be different to that in pubs.
The three duty changes that take effect today are only possible thanks to Brexit, and the guarantees set out in the Windsor Framework signed by the Prime Minister in February.
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Rishi Sunak said: “We have taken advantage of Brexit to simplify the duty system, to reduce the price of a pint, and to back British pubs”.
The move comes as other changes, described as “landmark” by the Government, come into effect.
Drinks will now be taxed by strength, and for the first time a new ‘Small Producer Relief’ will help small brewers created new drinks and grow their businesses.
The changes have also lowered duty in shops and supermarkets on may of the UK’s favourite tipples, including pale ale, pre-mixed cocktail tins and English sparkling wine.
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This morning a minister told LBC while the Government is not forcing pubs to pass the tax relief onto customers, they can choose to do so or improve their overall balance sheets to ensure fewer pubs have to close.
Roads minister Richard Holden said: “We have a pretty competitive pubs and clubs environment, with 38,000 pubs and clubs across the country and one of the differentiators between pubs is price and I’m sure some of them will be wanting to get those extra customers and pass it on”.
“I get constant complaints from my constituents or landlords about how the supermarkets have been able, over the years, to be able to outcompete pubs because they can sell things at massive discounts.
“I think that anything we can do to help support really important pubs and clubs across the country is a really valuable thing.”
Irish cream will come down by 3p, cans of five percent ready-to-drink cocktails by 6p, Prosecco by 61p and 500ml 3.5 percent pale ale by 20p a bottle.
The price of strong wines will increase, however.
The changes are part of the biggest shake up of there alcohol duty system in 140 years.
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