Was it good or bad news for Breweries in the Budget?
It’s been about six weeks now since George Osborne announced his Budget for 2016 and analysts and experts have had time to digest the impact it will have on the UK industries.
So is it good or bad news for the UK’s Brewery? Pretty good as it turns out.
Duty on beer, cider, whiskey and other spirits has been frozen whilst others will rise with inflation. This obviously makes beer more affordable in real terms to consumers so no one should be put off purchases by increasing costs.
The rumoured ‘Sugar’ tax became a reality and will be introduced in two years’ time on soft drinks in an attempt to tackle childhood obesity. The introduction is delayed to allow companies time to reduce their sugar content and promote lower sugar brands in their place. It has not been mentioned so far in connection to beer, but should the ‘Sugar’ tax work on tackling the issues with children then it could perhaps be rolled out to address the same issue in adults.
Business rates will see a reduction by “more than doubling” the small business rate relief, meaning that 600, 000 would pay no business rates at all next year, saving £6,000. The rate of corporation tax will fall from 20% to 17% by April 2020, so again more money in the pockets on Breweries to invest.
Perhaps the drinks industry as a whole didn’t come out too well from the Budget, but it’s all good news for breweries.