Government denies knowing impact of tax raid on pubs
Business Secretary Peter Kyle has stated that the Treasury was unaware of the potential consequences of a tax raid affecting pubs during the recent Budget discussions, reports BritPanorama.
In comments made to Times Radio, Kyle asserted that the Treasury “didn’t have access” to crucial information regarding the business rates shake-up. This revelation comes amidst concerns from the hospitality sector regarding the implications of rising taxes.
An enhanced financial package is currently being developed in Whitehall to support struggling pubs, with announcements expected in the coming days. The government is responding to feedback indicating the tax changes have significantly impacted several businesses in the sector.
Kyle explained, “Now, just to be really clear about what happened and didn’t happen during the Budget, we actually lowered the overall rate for business rates. But an independent reviewer then reviewed the rate valuation of each property. We didn’t have access to that information before making these decisions.”
The hospitality industry is actively engaging with the Treasury to discuss options for extended support, which could include targeted aid for hotels and restaurants affected by the new tax structure.
In parallel, the Liberal Democrats have expressed their intentions to challenge the planned increase in alcohol duty, set for next month. Treasury spokesperson Daisy Cooper stated, “We are going to force a vote tomorrow as part of the Budget debate.” She emphasised the various challenges facing the hospitality industry as they prepare for increased costs associated with alcohol duties.
Starting from next month, alcohol duty rates will rise by 3.66 per cent, which will raise the price of a pint of beer by approximately 2p and add 10p to a bottle of wine.
The government’s approach to addressing concerns among hospitality businesses is indicative of a broader acknowledgment of the pressures faced by the sector amidst changing economic conditions.
This situation underscores the delicate balancing act that policymakers must navigate in crafting fiscal policies that both stimulate growth and manage public revenue, as the UK continues to adjust to evolving economic realities.
