Budget 2024: Alcohol freeze 'not enough', says Upham Inns pub chain

The freeze in alcohol duty announced in the budget will not address all the cost pressures facing the hospitality sector, a pub group director has said.

Duty on beer, wines and spirits was due rise by 3% in August but the freeze has been extended to February next year.

Chancellor Jeremy Hunt insisted the move was "backing the great British pub".

David Butcher of Upham Inns welcomed the freeze, but said he had wanted more help with VAT and business rates.

Announcing the extension, Mr Hunt said: "This benefits 38,000 pubs across the UK - on top of the £13,000 saving a typical pub will get from the 75% business rates discount announced in the autumn.

"We value our hospitality industry and are backing the great British pub," he told the House of Commons in his budget speech earlier.

Mr Butcher, whose company owns pubs in Hampshire, Wiltshire and Berkshire, including the Hawk Inn near Andover and the Thomas Lord in West Meon, said the freeze would "help our drinkers".

"But I think the challenges are much bigger than holding duty on alcohol," he said.

"Given all the challenges the sector's faced - Covid, the energy crisis, inflation - we've got some huge cost pressures on the business.

"It would have been good to see some help on VAT and perhaps on business rates - we've got another 7.5% increase coming next April so some help there would have been great."

However he welcomed the cut in fuel duty and National Insurance contributions.

"Anything that leaves cash in people's pockets to allow them to come out and enjoy themselves, we welcome wholeheartedly," he said.

Mr Butcher said the pub sector had to diversify to survive - the Hawk Inn has even brought in a pair of alpacas in to entertain customers.

He said: "You don't find many pubs these days you would class as 'drinking pubs' - if you do food, you've got to do good food.

"If you do accommodation, you've got to do it well and it all requires investment.

"Anything that adds to the diversity of the business is a great advantage - the alpacas a new thing for us, getting the community involved in as many of the things we do as possible."

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