Alcohol duty rise to hit Dorset pubs and breweries

Dorset breweries are set to be hit by higher alcohol duty rates from the 1st February next year.

Chancellor John Healey announced in his budget that alcohol duty will rise in line with the Retail Price Index inflation.

He estimates that this will make each pint 2p more expensive for beer producers and importers.

Connor Hignett is the Senior Brewer for the Brewhouse and Kitchen in Southbourne.

He said: “I know that doesn’t sound like much but it does add up over many many pints, there’s not a large profit margin on pints.”

To support local breweries, the government has confirmed alterations to the Small Producer Relief, proposing over £10 million to support over 2,000 small breweries.

Richard Brown has owned The Way Outback Brewing Company in Southbourne for ten years.

His brewery is eligible for Small Producers Relief.

He said: “It obviously helps. If they took that away we wouldn’t be in existence at all.”

However, he says that despite the relief, he expects his overall costs to rise, with the prices of the key ingredients, and utilities required to brew the beer, going up

Richard Brown’s business has been hit by rising costs. Image: Oliver Webb

He previously owned two bars in the area but now only has one across from his brewery.

He says that the increases in minimum wage meant he was forced to close his other, as it was too expensive to run.

He now pays business rates, after previously receiving a 100% reduction, which he claims has taken a large chunk out of his earnings.

He said: “We used to get money coming in and very little going out. Now, money comes in and just disappears. It’s scary running your own business.”

Milton buys beer from local brewers and serves them directly from the keg. Image: Oliver Webb

Chancellor John Healey also announced that pubs that qualify for business rate reductions will see their reduction increased to 35% from the 15% prior to the budget.

The Treasury also estimates that an additional 3,500 pubs could be eligible to pay no business rates, after the threshold for the rateable value rises from £1,200 to £1,800 in April.

Milton Fenton runs the Silverback Alehouse in Winton, which qualifies for a 100% reduction on business rates

He predicts that the increased alcohol duty rates will make beer more expensive for him to buy which, alongside rising electricity and gas prices, will inflate the cost of running his micropub.

He said: “It’s giving with one hand and taking a lot more away with the other.”