Aspirations for the budget
The autumn budget, Chancellor John Healey’s first, will be announced on 28 October. CAMRA, along with most of the hospitality industry, wants to see a reduction in the rate of VAT for the industry. 10% is the figure usually quoted. Reports in the press however suggest that this is unlikely.
Other items on the wish list are:
• lower beer and cider draught duty in pubs;
• a fairer business rates system;
• the reversal of increased Employer National Insurance contributions;
• assistance with pubs’ energy bills.
The Society of Independent Brewers and Associates (SIBA) are putting pressure on the Chancellor to reduce the duty payable on beer sold ‘over the counter’ in pubs by adjusting the Draught Relief system. Pubgoers are invited to join the ‘Drop the Tap Tax’ campaign by signing their petition at www.droptaptax.com. Andy Slee, SIBA’s chief executive, said, “We’re encouraging pubgoers, beer drinkers and others to show their support by signing the petition and contacting their MP to urge the chancellor to Drop the Tap Tax in October.” Draught Relief is currently set at 13.9% and the campaign wants this extended to 30%. I suspect that the best that we will see is a freeze.
Following the Prime Minister’s announcement of a 20% reduction in business rates on pubs, it has been announced that there will be an independent review into the methodology for their calculation.
An end to the levy?
Financial impositions on pubs have been under a great deal of scrutiny but I’ve seen no recent mention of the late night levy. For those who have forgotten the details (as I had), any business that wishes to sell alcohol at any time between midnight and 6am must pay an annual fee of between £299 and £4,400. Newcastle City Council’s licensing committee recently decided to discontinue the levy and this is expected to take effect on 31 October. I’m sure that the hospitality trade would like to see this spread. At present, seven councils in Greater London operate the levy: the City of London, Camden, Hackney, Islington, Redbridge, Southwark and Tower Hamlets. The hours involved mean that relatively few pubs pay the levy but a number did cut back their hours to midnight to avoid payment when it was introduced.
Last stand?
Early in August a row broke out over Westminster City Council’s rules for so-called vertical drinking. I’ve waded through a great deal of press coverage and it all seems somewhat confused. As far as I can work out, the rules have existed for many years and are simply being brought forward into the latest iteration of Westminster’s licensing policy. They have been applying them for some time to any new venues seeking a licence in what is called the ‘Soho cumulative impact zone’. Nowhere else. Any new venue has to agree that all of their customers will be seated, that there will only be table service (no ordering at the bar) and no ‘vertical drinking’ outside. Some reports say that this is being done largely at the behest of the Soho Society, described as ‘an influential group of local residents and some local businesses’. Others see Soho as a crucial part of London’s wider hospitality offer and believe that these restrictions make it virtually impossible for a venue to be financially viable and, as such, are effectively a ban on new pubs and bars. The situation has led to a serious rift with the Mayor of London, Lord Khan of Tooting (as he is now). A forthcoming change in the Mayor’s powers may however see the argument swing his way.
Threat reduced
Pubs make a tempting target for those who wish to find premises for what some regard as dubious uses. With the passing of the Tobacco and Vapes Act 2026, the threat of pubs being turned into ‘adult gaming centres’ or vape shops has diminished. Vape shops are to be removed from the planning use class for shops etc (Class E) and placed in a class of their own so that each opening will require planning permission. For ‘adult gaming centres’ and betting shops, there has until now been a rule, the ‘aim to permit’, under which local authorities must agree to an opening if licensing requirements have been met. Full planning permission will now be required and planning authorities will be able to take a wider view.
Browned off
Readers might like to note that in Flanders, between 2010 and 2024, 4,174 cafés – that’s four in ten – disappeared. The very existence of Belgian traditional cafes is under threat. Politicians are currently formulating a ‘Café Plan’ with the aim of having the ‘brown pub’ designated as a Flemish Heritage asset. I am pleased to say that Podge’s Belgian Beer Tours, one of our regular advertisers, have been doing their bit, taking travellers to these marvellous little places, for 30 years.
John Cryne