Alcohol tax rise ‘final blow’ for late-night firms

The Night Time Industries Association (NTIA) said the UK alcohol duty increase today (1 August) could be the ‘final blow’ for businesses, causing closures and ‘countless’ job losses.

From today, the UK government has increased alcohol duty by 10.1%. The move was announced during the UK’s spring budget by chancellor Jeremy Hunt in March.

Trade body the NTIA said the duty increase ‘threatens to inflict severe damage on an already struggling industry’.

The NTIA, which represents bars, restaurants, pubs, clubs and entertainments venues in the UK, noted the sector has been affected by pandemic restrictions and closures.

The trade body believes the new alcohol tax regime will push businesses ‘over the edge’ as many were ‘barely surviving’, as well as ‘undermine’ post-pandemic recovery efforts.

Michael Kill, CEO of NTIA, said: “The recent actions taken by decision makers to implement the biggest single increase in alcohol duty in almost 50 years, coupled with the wilful withdrawal of support and the imposition of already excessive taxes, have ignited anger and frustration across the night-time economy sector.

“From the withdrawal of non-domestic energy support to changes in the late-night levy, the withdrawal of regulatory easements and now the biggest increase in alcohol duty for several decades, the consequences of these decisions are becoming increasingly burdensome.

“As a sector that has stood resilient in the face of unprecedented challenges, we cannot help but feel neglected by the very authorities we have supported during the pandemic crisis. The speed with which we seem to be forgotten is disheartening, especially given the pivotal role our businesses play in driving economic growth and fostering vibrant communities.”

The NTIA also named a number of other issues, including increased competition for local businesses as they compete with neighbouring regions or online platforms.

‘Far-reaching consequences’ 

The NTIA is calling on the government to rethink its duty increase and to speak to industry representatives to understand the ‘far-reaching consequences of this decision’.

It further urged the government to look for alternative measures to promote growth, innovation, and job creations.

Kill added: “I urge decision makers to recognise the profound impact of their actions and the ripple effects they will have on our industry, workforce, and society as a whole.

“We are not asking for special treatment but simply for fair consideration, understanding, and support as we navigate the road to recovery.

“We need to find solutions that address the challenges faced by our sector, not squeeze the life out of it.”

The Scotch Whisky Association also called on the UK chancellor to rule out a further duty increase on spirits, and provide tax breaks for distillers.