Latest news with #BritishBeer&PubAssociation
Scottish Sun
14 hours ago
- Business
- Scottish Sun
Cost of supermarket booze set to soar after Labour clobbers brewers with extra £124million in taxes
The British Beer & Pub Association reckons it will put around 16p on a four-pack SHOP BOOZE TAX HIKE Cost of supermarket booze set to soar after Labour clobbers brewers with extra £124million in taxes Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) BREWERS have warned of shop price hikes after being hit with a £124million tax on packaging. Ministers yesterday saddled beer and lager producers with a £192 a tonne charge for recycling their glass bottles. Sign up for Scottish Sun newsletter Sign up The Extended Producer Responsibility (EPR), which puts them on the hook for the cost of council collection, sorting and recycling, has been branded a 'Bevy Levy'. The British Beer & Pub Association reckons it will put around 16p on a four-pack. Boss Emma McClarkin said: "By heaping a further £124million on brewers - the equivalent of 4p per 330ml bottle – these new fees sabotage the Chancellor's hopes for British businesses and will hit shoppers at the tills. 'To put it mildly, EPR could drive some brewers out of the glass bottle market and heap more costs on pubs which will only endanger jobs and growth. 'This is just not good enough given the barrage of rates and regulations the sector is already grappling with.' Alex MacDonald of the UK Spirits Alliance warned 'punishing fees' for glass will hurt business and raise the price of drinks for consumers. Earlier in the year Jeremy Clarkson used his Sun column to lash out at the Bevy Levy and all the other taxes crippling pubs like his, The Farmer's Dog. EPR makes producers responsible for the full eco lifecycle of their products, footing the cost of councils to collect, sort and recycle waste packaging. Labour plotting blitz on boozers with Budget 'sin tax' raid on pubs as Wes Streeting threatens outdoor smoking ban
Gulf Today
04-04-2025
- Business
- Gulf Today
As tax hit looms, UK employers prepare to push up prices
William Schomberg, Reuters Pub owner Philip Thorley sees only one direction for his prices once a tax hike for British employers kicks in next week: up. That may be bad news for the Bank of England, which plans to lower interest rates to help the sluggish economy. Thorley, who owns 18 hospitality sites around the seaside town of Broadstairs, said he could not absorb all the extra cost, which follows a painful run of inflation in recent years. 'We feel as though we've been fighting Mike Tyson with one hand tied behind our back,' Thorley said as drinkers in his Cramptons sports bar watched cycling and cricket on screens. 'We're not a sponge. At some point we've got to look at it and say enough's enough.' Many business owners are bracing for the 25 billion-pound ($33 billion) hike in employers' social security contributions — announced in October by finance minister Rachel Reeves and which comes into force on Sunday. Reeves has described her first budget, which included the biggest package of tax increases in three decades, as a 'once-in-a-generation' change to invest in public services and modernising the economy. On Wednesday, she told lawmakers that there were costs to her tax changes but being irresponsible with the public finances would be worse. The social security hike will be felt keenly in hospitality, where two-thirds of workers are part-time and have mostly earned too little for employers to pay the contributions. But from the start of the tax year on April 6 the threshold drops sharply, to 5,000 pounds a year from 9,100 pounds for workers aged over 21. The contributions rate will also rise. At Cramptons, only four of 30 staff outside the kitchen earn more than the existing threshold. From next week, almost all of them will. 'It is going to be really difficult for us ... to swallow this,' said Thorley, who employs about 400 people, many of them young workers. 'However, we're not going to ... be making knee-jerk reactions. We're going to try to be pragmatic about it.' Thorley recently increased his drinks prices by 5% following an annual price hike by beer suppliers. He expects a similar rise will be needed to cover most of the tax increase. The British Beer & Pub Association estimates the average price of a pint will go up by 21 pence - taking it above five pounds - due to the tax hike and other changes. On April 1, Britain's minimum wage went up by nearly 7%, with bigger increases for younger workers. Hospitality firms are also facing a cut to COVID-era relief from a commercial property-related tax. The difference between labour costs paid by employers and employees' take-home pay - the so-called tax wedge - is lower in Britain than among European peers, a result of decades of government policy to prioritise hiring. But a push to narrow that difference would not be pain-free. While some firms are planning to automate more - retailer Currys has said it will replace paper price labels with electronic labelling - most employers are considering less hiring and slower wage increases in response to Reeves' budget. Steve Hardeman, owner of Clevedon Fasteners which makes parts for construction and engineering firms, said the social security and minimum wage increases were the equivalent of adding two people to his staff of 28. Rory O'Keefe, commercial director at medical device maker Europlaz, said his firm hired two people on fixed-term rather than permanent contracts and would take three students on short-term placements instead of finding graduates. The Bank of England is waiting to see what impact the budget changes will have. Governor Andrew Bailey and colleagues say they expect to keep cutting interest rates after three careful reductions since August, fewer than in the euro zone and United States. Last month the BoE stressed the uncertainties hanging over the economy. They include the risk of a global trade war, which could cause a slowdown and weaker inflation. That risk grew as U.S. President Donald Trump announced a sharp increase in tariffs on imports from around the world on Wednesday . BoE surveys of British businesses, however, have shown the most common responses to Reeves' budget will be higher prices and to absorb the hit in profit margins. Rob Wood, a former BoE economist, said the central bank risked underestimating the price impact of the changes, which were likely to add half a percentage point to an inflation rate already under pressure from other one-off costs, and might even push it above 4% later this year from just under 3% now. That would be a lot lower than inflation of 11% in 2022 but more than double the BoE's 2% target. 'The Bank of England would normally look through one-off inflation rises,' Wood, now chief UK economist at Pantheon Macroeconomics, said. 'But one-off or temporary inflation has become a bit of a dirty word since COVID, after central banks misjudged this pretty heavily through 2022 and 2023.' Rising inflation expectations among households and businesses mean the BoE cannot count on pay deal restraint, especially if Reeves' tax increase fuels further price rises. 'If you had to pick a time to make this change, I wouldn't have done it now,' Wood said.
Yahoo
04-04-2025
- Business
- Yahoo
Teetotal Trump hits brewers with surprise beer can tax
Brewers have been hit by a surprise 'beer can tax' after it emerged that lager, stout and pale ale would incur a higher US tariff than other food and drink. Under sweeping global tariffs announced on Wednesday by Donald Trump, most food and drink imported into the US from Europe incurs a tariff of 20pc. A lower rate of 10pc applies to the UK. However, the small print of the new US tariff system shows that cans of beer will in fact be subject to the higher rate of 25pc that Mr Trump has applied to aluminium. Brewers have warned that the decision to extend the 25pc tariff to canned beers could cost thousands of jobs and hammer beer businesses across the UK and Europe. Emma McClarkin, the chief executive of the British Beer & Pub Association, said: 'A 25pc tariff on beer imported into the US is a direct hit to the brewers of the UK, who contribute so much to this country's economy and heritage. 'We urge the Government to defend the great British brewing industry and strike a deal which removes these harmful tariffs. 'With the enormous cost of doing business, many British brewers won't be able to sustain a hit such as this from one of our biggest trading partners.' European brewers are also lobbying Brussels to defend their interests amid warnings 100,000 jobs could be lost on the Continent – 5pc of all brewing jobs in Europe. Julia Leferman, the secretary-general of Brewers of Europe, told the Financial Times: 'We are calling on the [European] Commission to use all diplomatic channels and whether through negotiation or retaliation, find a way to de-escalate this tariff in which we have become a collateral victim.' Dutch brewer Heineken, Denmark's Carlsberg and Dublin-based Guinness are all significant exporters to the US and will be affected by the new tariffs. Brewers are not yet clear on some crucial details, such as whether the 25pc tariff will be charged on the value of the entire product or just on the value of the can. A BBPA spokesman said it looked from the US government's wording as if the former would be the case. Mr Trump is a self-proclaimed teetotaller. He has said in interviews that this is because his older brother, Freddie, was an alcoholic – a factor that contributed to his premature death. The president has said: 'It was a very tough period of time. If you don't start you're never going have a problem. If you do start you might have a problem. And it's a tough problem to stop.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
04-04-2025
- Business
- Telegraph
Teetotal Trump hits brewers with surprise beer can tax
Brewers have been hit by a surprise 'beer can tax' after it emerged that lager, stout and pale ale would incur a higher US tariff than other food and drink. Under sweeping global tariffs announced on Wednesday by Donald Trump, most food and drink imported into the US from Europe incurs a tariff of 20pc. A lower rate of 10pc applies to the UK. However, the small print of the new US tariff system shows that cans of beer will in fact be subject to the higher rate of 25pc that Mr Trump has applied to aluminium. Brewers have warned that the decision to extend the 25pc tariff to canned beers could cost thousands of jobs and hammer beer businesses across the UK and Europe. Emma McClarkin, the chief executive of the British Beer & Pub Association, said: 'A 25pc tariff on beer imported into the US is a direct hit to the brewers of the UK, who contribute so much to this country's economy and heritage. 'We urge the Government to defend the great British brewing industry and strike a deal which removes these harmful tariffs. 'With the enormous cost of doing business, many British brewers won't be able to sustain a hit such as this from one of our biggest trading partners.' European brewers are also lobbying Brussels to defend their interests amid warnings 100,000 jobs could be lost on the Continent – 5pc of all brewing jobs in Europe. Julia Leferman, the secretary-general of Brewers of Europe, told the Financial Times: 'We are calling on the [European] Commission to use all diplomatic channels and whether through negotiation or retaliation, find a way to de-escalate this tariff in which we have become a collateral victim.' Dutch brewer Heineken, Denmark's Carlsberg and Dublin-based Guinness are all significant exporters to the US and will be affected by the new tariffs. Brewers are not yet clear on some crucial details, such as whether the 25pc tariff will be charged on the value of the entire product or just on the value of the can. A BBPA spokesman said it looked from the US government's wording as if the former would be the case. Mr Trump is a self-proclaimed teetotaller. He has said in interviews that this is because his older brother, Freddie, was an alcoholic – a factor that contributed to his premature death. The president has said: 'It was a very tough period of time. If you don't start you're never going have a problem. If you do start you might have a problem. And it's a tough problem to stop.'
Yahoo
04-04-2025
- Business
- Yahoo
Analysis-As tax hit looms, UK employers prepare to push up prices
By William Schomberg BROADSTAIRS, England (Reuters) - Pub owner Philip Thorley sees only one direction for his prices once a tax hike for British employers kicks in next week: up. That may be bad news for the Bank of England, which plans to lower interest rates to help the sluggish economy. Thorley, who owns 18 hospitality sites around the seaside town of Broadstairs, said he could not absorb all the extra cost, which follows a painful run of inflation in recent years. "We feel as though we've been fighting Mike Tyson with one hand tied behind our back," Thorley said as drinkers in his Cramptons sports bar watched cycling and cricket on screens. "We're not a sponge. At some point we've got to look at it and say enough's enough." Many business owners are bracing for the 25 billion-pound ($33 billion) hike in employers' social security contributions - announced in October by finance minister Rachel Reeves and which comes into force on Sunday. Reeves has described her first budget, which included the biggest package of tax increases in three decades, as a "once-in-a-generation" change to invest in public services and modernising the economy. On Wednesday, she told lawmakers that there were costs to her tax changes but being irresponsible with the public finances would be worse. The social security hike will be felt keenly in hospitality, where two-thirds of workers are part-time and have mostly earned too little for employers to pay the contributions. But from the start of the tax year on April 6 the threshold drops sharply, to 5,000 pounds a year from 9,100 pounds for workers aged over 21. The contributions rate will also rise. At Cramptons, only four of 30 staff outside the kitchen earn more than the existing threshold. From next week, almost all of them will. "It is going to be really difficult for us ... to swallow this," said Thorley, who employs about 400 people, many of them young workers. "However, we're not going to ... be making knee-jerk reactions. We're going to try to be pragmatic about it." Thorley recently increased his drinks prices by 5% following an annual price hike by beer suppliers. He expects a similar rise will be needed to cover most of the tax increase. The British Beer & Pub Association estimates the average price of a pint will go up by 21 pence - taking it above five pounds - due to the tax hike and other changes. On April 1, Britain's minimum wage went up by nearly 7%, with bigger increases for younger workers. Hospitality firms are also facing a cut to COVID-era relief from a commercial property-related tax. HIRING HIT TOO The difference between labour costs paid by employers and employees' take-home pay - the so-called tax wedge - is lower in Britain than among European peers, a result of decades of government policy to prioritise hiring. But a push to narrow that difference would not be pain-free. While some firms are planning to automate more - retailer Currys has said it will replace paper price labels with electronic labelling - most employers are considering less hiring and slower wage increases in response to Reeves' budget. Steve Hardeman, owner of Clevedon Fasteners which makes parts for construction and engineering firms, said the social security and minimum wage increases were the equivalent of adding two people to his staff of 28. Rory O'Keefe, commercial director at medical device maker Europlaz, said his firm hired two people on fixed-term rather than permanent contracts and would take three students on short-term placements instead of finding graduates. The Bank of England is waiting to see what impact the budget changes will have. Governor Andrew Bailey and colleagues say they expect to keep cutting interest rates after three careful reductions since August, fewer than in the euro zone and United States. Last month the BoE stressed the uncertainties hanging over the economy. They include the risk of a global trade war, which could cause a slowdown and weaker inflation. That risk grew as U.S. President Donald Trump announced a sharp increase in tariffs on imports from around the world on Wednesday . BoE surveys of British businesses, however, have shown the most common responses to Reeves' budget will be higher prices and to absorb the hit in profit margins. Rob Wood, a former BoE economist, said the central bank risked underestimating the price impact of the changes, which were likely to add half a percentage point to an inflation rate already under pressure from other one-off costs, and might even push it above 4% later this year from just under 3% now. That would be a lot lower than inflation of 11% in 2022 but more than double the BoE's 2% target. "The Bank of England would normally look through one-off inflation rises," Wood, now chief UK economist at Pantheon Macroeconomics, said. "But one-off or temporary inflation has become a bit of a dirty word since COVID, after central banks misjudged this pretty heavily through 2022 and 2023." Rising inflation expectations among households and businesses mean the BoE cannot count on pay deal restraint, especially if Reeves' tax increase fuels further price rises. "If you had to pick a time to make this change, I wouldn't have done it now," Wood said. ($1 = 0.7596 pounds) (Graphic by Leigh Thomas in Paris; Editing by Catherine Evans) Sign in to access your portfolio
