MPs will no longer enjoy subsidised food and drink in the House of Commons as part of plans to reduce catering costs in the Commons by £500,000. The change was announced as part of the emergency budget, and will see the price of meals, as well as drinks such as beer, cider and wine, increased in the House of Commons bar, with prices set to reflect those of high street bars and pubs .
The budget brought the pub industry an unexpected boost, amid fears that tax on beers and wines would once again be seen as an easy target for extra revenue by the government. Instead, however, the government opted to freeze tax duty on alcohol and tobacco, as well as petrol, while also scrapping the previous Labour government’s plans to increase tax duty on cider by 10 per cent.
As such, the budget will help both brewers and the pub industry to manage in the face of continuing economic pressures. With the government instead increasing VAT by 2.5 per cent, pubs will be hoping that consumers do not opt against heading down to their local in a bid to tighten the purse strings.
Beer Prices to Rise in Commons as Part of Positive Budget for Pub Industry
Thu, 24 Jun 2010
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