Hertfordshire brewer and operator McMullen’s and TCG have both pledged to make donations to charity in response to the abolition of the Beer Duty Escalator in the Budget, along with a 1p duty reduction on a pint.
McMullen’s said it would implement in full all the changes in duty on beer, cider, wine and spirits, as announced by the Chancellor, with the net benefit set to be shared amongst a number of local charities.
Across the group’s managed pubs where its prices in multiples of 5p it has decided to reflect the impact of all the duty changes in two ways - firstly, by reducing the price of a pint of draught beer by 5p in 26 of its community pubs and secondly, in its other managed pubs, the company will donate the net benefit of the duty changes to charity instead of reducing the price of beer by 1p per pint.
It calculates the net benefit to amount to £20,000 over 12 months. The changes will come into effect on all deliveries from its warehouse from 25 March.
It said that all its tenants make their own pricing decisions which will have to take into account the increase in their other major costs over the last 12 months, such as rates, energy and wages, along with the recently announced changes in duty which will be passed on to them.
Peter Furness-Smith, managing director, said: “McMullen’s will not profit from this helpful beer duty reduction and we hope that our customers will approve of the action we are taking as we continue to strive to ensure that all our pubs consistently offer excellent value for money.
“McMullen’s is delighted that the Chancellor has at last recognised the damage that has been done by excessive taxation of the beer and pub industry over many years. Additionally, the proposed £2,000 employment allowance for small businesses, aimed at reducing employers’ national insurance will potentially help our self-employed tenants so this is also a very welcome development.
“We are particularly grateful therefore to all our local MPs for their support in getting the message across to the Treasury.
“As far as pubs are concerned there is still much more to be done to ensure a competitive level playing field with supermarkets but this small reduction in beer duty is a very positive move and particularly appreciated at this time when we know how little room the Government has in which to manoeuvre in the current economic climate.”
TCG is to donate the Chancellor’s ‘Penny off the Pint’ to Cancer Research UK from the 25 March, up to the busy Easter weekend.
The company will donate a penny for every pint of beer sold in all its 75 pubs and bars nationwide.
TCG chief operating officer Nigel Wright said: “The Chancellor’s move was great news for the trade after much campaigning, but also took pubs and brewers by surprise. While we still have some beer in stock paid at the old rate, and we’re waiting for new prices from our suppliers, we decided the fairest thing all round was to donate Mr Osborne’s ‘penny off the pint’ to Cancer Research UK.”
