The hospitality industry again finds itself on the wrong side of the Budget tracks, with Chancellor Alistair Darling announcing a 2 per cent hike on duty on wine, beer and spirits.
The hospitality industry again finds itself on the wrong side of the Budget tracks, with Chancellor Alistair Darling announcing a 2 per cent hike on duty on wine, beer and spirits. The knock-on effect of this government’s last Budget on the cost of a pint of beer and a glass of wine is sure to cause added pain to pubs, bars, restaurants and hotels already experiencing huge challenges with customers cutting back on leisure spending.
Chris Durant, Director of Beacon Purchasing, the UK’s largest purchasing consortium for the independent hospitality industry, said, ‘Alistair Darling’s Budget is not what the hospitality industry needs at this time! The tax hike on alcohol will be yet another blow and where are the opportunities for hospitality businesses to encourage more consumer spend? It would have been a great opportunity to reduce VAT rates for hospitality in line with many of our EC counterparts.
‘The increase in fuel tax, albeit now stepped in 3 stages over the next year, will ultimately have the effect of increasing distribution costs for suppliers which will no doubt eventually have to be passed on to consumers. UK fuel rates are already amongst the highest in Europe and this increase will do nothing to keep inflation low.”