A pub landlord has criticised the government for 'inflicting penalties' on the hospitality sector by unfreezing alcohol duty tax.

As of August 1, the UK government's freeze on alcohol duty tax, which was implemented following the Autumn Budget announcement in 2020, came to an end, increasing the tax owed on many popular alcoholic beverages and potentially causing a loss in custom for licensed venues. 

Steve Blake, 49, landlord of The Duke pub on Queens Road in Marlow, said the unfreezing of the duty tax would "inflict further penalties" on an industry that is already facing economic struggles.

He added that the government decision had come at a crucial time for the hospitality sector, with the number of pubs in the country dropping below 40,000 for the first time this year and the closure of 7,000 venues since 2013. 

"In the middle of the biggest cost of living crisis in 50 years, the UK government has chosen to inflict further penalties on a sector that is already fighting for its life.

"The total extra cost will be over £225 million, which the sector will have to swallow if these increases are not passed on to customers by pubs, which many will not do in a cost of living crisis. The Duke will not be passing the increase on to customers at this time."

He added that The Duke, which was voted 'Best Pub in Marlow' at Marlow FM's Hidden Gem Awards 2023, is one of many that serves a wider community purpose and should not be penalised by harsh taxation measures.

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Fortified wines have seen the largest increase in duty tax since the unfreezing, with bottles of port and sherry rising in price by £1.30 and 98p respectively.

The price of a bottle of vodka has also increased by 77p and bottles of wine by 44p each. 

Bottles of beer and cider have seen minor increases of 3 pence and 2 pence but the reinstation of the duty tax has coincided with an increase in the value of Draught Relief from 5 per cent to 9.2 per cent in an effort to reduce the tax burden on draught beers and ciders under 8.5 per cent ABV (alcohol by volume). 

However, finance specialists RIFT found that pubs are nevertheless set to keep just 45 per cent of the profits for each pint of beer they sell under the new measures.

Steve also cautioned against taking the Draught Relief scheme at face value.

He said: "Yes, the duty on draught pint is reduced by 11p, but every other tax is going up 20 per cent or more - plus VAT!

"They're giving with one hand and snatching back more with the other. Bottled beer tax is going up by over 10 per cent - way over the rate of inflation - and tax will now account for 33 per cent of a bottle of beer!

"With most pubs charging upwards of £5 for a pint, which already includes £1 in VAT for every pint served, 11p is not a gamechanger. Adding £1 to a bottle of wine or spirits is."

He added that The Duke as a whole regrets the stance the government has taken on alcohol taxation, describing it as a "shortsighted" approach to supporting pubs and their local communities.

"Taxation is always a choice made by the government, and this is not a good choice by any measure at this time."