Pub industry reacts to Autumn Statement

In welcoming today’s announcement, leading United Kingdom insurer Aviva pledged to pass 100 per cent of the savings to its customers.

Trade groups including the British Beer & Pub Association (BBPA); Association of Licensed Multiple Retailers (ALMR); Federation of Licensed Victuallers Associations (FLVA); British Institute of Innkeeping (BII); Society of Independent Brewers (SIBA); Brewing, Food & Beverage Industry Suppliers Association (BFBI); The British Soft Drinks Association (BSDA); and Guild of Master Victuallers (GMV), last week joined together to pen an open letter to the Chancellor.

The Chancellor said this is “the biggest real terms increase to the basic state pension in 15 years”.

‘Retail relief was providing a discount for pubs with a rateable value of £50,000 or less, which is 75% of all pubs.

He added, ‘In the coalition government’s March budget, cumulative cuts to real departmental spending limits were forecast to reach £42bn by 2018/19.

She said: “The extension of the small business rate relief for another year is certainly welcome as this is something the ALMR has consistently pushed for”.

He concluded his comments with the remark that the government and the Bank of England could be faced with a stark choice in the new year as he feels that the continued cuts might cause economic growth to slow, necessitating an interest rate cut, while inflation could return, and imply an interest rate rise as the prudent course of action. The licensed hospitality sector is carrying an enormous burden in the shape of business rates, with pubs accounting for 2.8% of all United Kingdom tax receipts; a situation that is plainly unfair and unsustainable for some businesses. Concerns are already being raised that this could further clog up the small claims court system. The ALMR’s Benchmarking Report shows that in labour intensive businesses such as pubs and bars, payroll costs often account for over half of all operating costs and nearly one-third of turnover.

Mr Osborne, who did not mention the plan in his statement, replied: “The changes we’re making to student fees enable us to expand student places…”

Autumn Statement documents said IHT would not be payable on pension funds designated to drawdown but that were not drawn as income by the time of the holder’s death. We await details of how smaller businesses will be supported in training apprentices.

Millions of people have been “saved from the misery of tax credit cuts”, the newspaper says – and claims that its campaign against the controversial policy contributed to the U-turn.