A recent cut in alcohol duty aims to reduce draught pint prices by 1p, benefiting the sector for the first time in ten years. However, rising National Insurance contributions and minimum wage increases are expected to counteract these benefits, driving prices up at pubs. While the tax relief affects approximately 60% of drinks sold in pubs, critics have expressed concerns that it won't sufficiently offset the increased operational costs brought by wage hikes. Pub and restaurant sector leaders emphasize that these changes disproportionately affect them compared to supermarkets.
Wetherspoons CEO Tim Martin stated that higher employment expenses will cost his firm £80 million a year, impacting pubs and restaurants more than supermarkets.
The Society of Independent Brewers noted that recent tax cuts are essential for helping pubs compete against cheap supermarket alcohol, despite critics deeming them insufficient.
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