From Saturday, the costs of wine and spirits will climb while the government increases alcohol obligation in accordance with inflation and new rules will implement those tax levels to link the strength (ABV) of every drink.
Although trade organizations warn that this will be a “bitter blow” for the sector, the duty on design pints with a modest 1.7 percent will fall-in about 1 p from an average strength pint.
Under the revised system, taxes on a number of stronger drinks will rise even more. A temporary delay for certain wines ended last week, which means that the duty on an ABV -bottle Red Wine has risen from 14.5% with 54p, according to the Wine and Spirit Trade Association (WSTA). The WSTA argues that this increases the risk that the government’s entry goals undermine, because higher prices can cause consumers to buy less, while at the same time squeezing beverage producers.
A spokeswoman for the Treasury, however, defended the policy and emphasized the government’s urge to ‘modernize and simplify the service system’ in a way that supports drinks with a lower strength. The treasury has also expanded small producer lighting for drinks under 8.5% ABV, aimed at helping smaller brewers and traditional producers.
Although pubs welcome the small tax benefits on design drinks, they are still confronted with a wave of cost printing. In April, the increased contributions from the national insurance for employers and the higher minimum wage pubs can force the pint prices to increase by no less than 30 p to 40p. Tim Martin, Chief Executive of JD Wetherpoon, estimates that personnel costs rise at £ 80 million a year for the chain.
The British Beer and Pub Association urges the government to maintain support for the sector, warning for an “April -Klif Edge”. Nevertheless, some trade union representatives claim that large pub companies must absorb some cost increases instead of passing them on to customers.
For consumers, the costs of many alcoholic beverages – especially wine and spirits – will be able to upward inches, just as living is high. In the meantime, small brewers and producers who offer pints with a lower strength are benefiting from the changes, so that they may compete with supermarket offers for alcohol.