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Tayside and Fife pub bosses frustrated at lack of energy bills support in Budget

Chancellor Jeremy Hunt announced the Brexit pubs guarantee, which means the duty on draught pints in pubs will drop up to 11p lower than in supermarkets.

John Justice in front of The Pillars on Dundee's Crichton Street.
John Justice in front of The Pillars on Dundee's Crichton Street.

While the decision to freeze the duty charged on draught pints has been welcomed by Tayside and Fife pub bosses, they have criticised the lack of support on energy bills.

Chancellor Jeremy Hunt announced the Brexit pubs guarantee, which means the duty on draught pints in pubs will drop up to 11p lower than in supermarkets.

That has been largely welcomed by local publicans.

However, they are frustrated the UK Government is not offering more support to businesses on energy bills.

The current support scheme stops at the end of the month.

Mr Hunt did announce more support for households in his budget on Wednesday afternoon.

Chancellor Jeremy Hunt delivering his budget. Image: House of Commons/PA Wire

Announcing the freeze on draught pints, the chancellor said: “From August 1, the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.

“British ale may be warm, but the duty on a pint is frozen.”

Jonathan Stewart, who runs the Royal Arch Bar and Bistro in Broughty Ferry, said the draught relief was good news for the hospitality sector.

“Anything that helps the on-trade against off-trade is a good thing,” he said.

“Between 85 and 90% of all alcoholic drinks in Scotland are served in the off-trade, so anything to improve that differential for pubs is good news.”

John Justice, who runs Dundee’s Pillars Bar, said the new measure will help pubs.

He said: “It might allow pubs to keep prices frozen for a bit longer.”

Morag of The Star in Burntisland, however, said she was not sure what impact the freeze would have.

She said: “It sounds good. We’ll wait and see how much that means for customers at the pub, or prices not going up.”

‘Lack of support’ for energy bills

The pub bosses were critical of Mr Hunt for not doing more to support businesses through the energy crisis.

Mr Justice said: “All our costs are increasing. Anyone coming out of an electricity contract is going to be paying at least three times what they were previously.

“We’ve got gas canisters so that our kegs work the beer through, and the cost of that has doubled.

The Pillars showing on Dundee’s Crichton Street, Image: Kim Cessford/DC Thomson.

“But it’s all about getting people through the doors. If you can get the people through the doors, you’ll be OK.”

British Beer and Pub Association chief executive Emma McClarkin said: “The chancellor highlighted how our pubs are the most treasured community institution and we appreciate his efforts to provide some relief.

“However, a lack of immediate support in today’s Budget will still put the future of many of them at risk.”

That was a view echoed by Ms Douglas, who said: “There’s assistance for households with energy bills, but nothing for businesses.

“It is a problem and you can see businesses closing all the time.”

Despite the freeze on the duty charged on draught pints, prices at The Star will increase from next month.

“We’ve got energy bills to deal with. The living wage is going up next month so prices will have to go up.

Morag Douglas, owner of The Star Pub in Burntisland. Image: Steve Brown/DC Thomson.

“Customers won’t be happy about that, especially when the budget says the duty on draught beers have been frozen.”

Meanwhile, the Scottish Licensed Trade Association has welcomed the draught duty freeze.

But managing director Colin Wilkinson said: “I think the reaction of the licensed trade in Scotland is one of disappointment at what wasn’t mentioned in today’s budget.”

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