A change in the alcohol duty will be implemented across the UK beginning today, August 1, threatening many in the nightlife industry.
The previous tax system was determined by category, with beers charged per hectoliter per ABV, ciders and wines per hectoliter of the product only, and spirits charged per liter of pure alcohol in the product.
But now, all alcoholic drinks will be taxed based on strength on a “per liter of pure alcohol in the product” basis.
The hope is to make clubs and bars less associated with alcoholic harm and belligerence, but many worry that the added taxes will further deter customers from visiting bars or clubs amidst the cost of living crisis in the UK.
A tax hike of up to 20% could be added to drinks, greatly increasing the cost of a night out. The price of drinks over volume could also increase by 12% up to £1 with packaged beers from shops also likely to see a 10.1% increase.
The Night Time Industries Association’s Michael Kill explained, “The recent actions taken by decision-makers to implement the biggest single increase in alcohol duty in almost 50 years, coupled with the willful withdrawal of support and the imposition of already excessive taxes, have ignited anger and frustration across the night-time economy sector.”
He added, “I urge decision-makers to recognize the profound impact of their actions and the ripple effects they will have on our industry, workforce, and society as a whole… Our industry is essential to the fabric of our communities, and a thriving night-time economy benefits us all.”
Featured image a stock photo from Word Press
