Many thanks for contacting me about support for pubs.
Pubs up and down the country play a vital role not only in the economy but in our local areas, supporting a sense of community and pride of place. After nearly two years of difficulties as a result of the pandemic, I am glad that pubs have returned to business as usual.
The Government is committed to supporting our pubs and I welcome the fact that the Government’s long-term strategy for the hospitality sector includes an extension to pavement licences, making it easier and cheaper for pubs, restaurants and cafes to continue to make outdoor dining a reality with seating, tables and street stalls to serve food and drinks. This will be implemented through the Levelling Up and Regeneration Bill.
The Autumn Budget 2021 confirmed that duty rates on beer, cider, wine and spirits will be frozen for another year, a move which will save consumers £3 billion over the next five years. Duty rates on draught beer and cider will be cut by 5 per cent, taking 3p off a pint and further supporting pubs. Under a new temporary business rates relief, the majority of retail, hospitality and leisure properties will see at least 50 per cent off their business rates bills in 2022-23. As you may know, we are expecting an Fiscal Event on Friday when the Chancellor of the Exchequer may update this approach.
More broadly, I was glad to see the announcement in the Autumn Budget 2021 that, following a review, the alcohol duty regime is to undergo a major simplification. The old system was outdated system that set rates based on historical anomalies, and a new regime will be fairer to both consumers and producers, and promote product innovation in response to evolving consumer tastes.
Funding is also helping make it easier for community groups to protect and take over local assets, like pubs, which are at risk of loss without community intervention. The £150 million Community Ownership Fund allows community groups to buy assets so that they can continue to serve their local area. I am aware that rural pubs were among the local assets allocated funding in the scheme's first round, giving them a new lease of life for generations to come.
Businesses did not benefit from the Ofgem price cap and there was a risk that some would fall through the gap, unable to fix their energy price and unable to access the kind of support we are making available to households. To address this, the Prime Minister has announced a new 6 month scheme for businesses and other non-domestic energy users. This will offer support for businesses which is similar to that which is being provided to households.
After this initial 6 month scheme, the government will provide ongoing focused support for vulnerable industries. There will be a review in 3 months’ time to consider where this should be targeted to make sure those most in need get support. I understand that further details will be published shortly.
Thank you again for taking the time to contact me.
20 September 2022