Foodservice industry trade bodies have made comment on the changes announced in the mini budget.

Miles Beale, Chief Executive of the Wine and Spirit Trade Association (WSTA), said, “We welcome the Government’s sensible decision to freeze duty on wine and spirits. However, the Government’s response to the consultation on reviewing the way the UK taxes alcohol is a product of the Sunak era and clashes strongly with Chancellor Kwarteng’s desire to unleash the potential of the private sector and to simplify taxation.

'The proposals mean wine between 11.5% and 14.5% will be taxed at the mid-point - but only for 18 months. After that the Treasury are set to tax wine by strength adding a costly administrative burden for UK wine businesses and consumers. Fortified wine will be offered no transition, meaning the outlook is even worse.

'For months the WSTA has been calling for a simpler system for wine taxation which would cut costly red tape. The response published today fails to do so – or to understand the impact that taxing wine by strength will have on the UK wine businesses and consumers.
We need a permanent and simple way of taxing wine, the UK’s most popular alcoholic drink.

'An 18-month transitional period fails to do this and it is not available to all wines.
These latest proposals will be bad news for consumers worried about the cost of living; and create complexity, burden and cost for UK businesses. They also fail to take advantage of measures that could support the new Chancellor’s aims for private sector-inspired growth the British economy.'

The Association of Convenience Stores (ACS) chief executive James Lowman said, “We welcome that the government’s plan aims to stimulate growth and incentivise investment by businesses. In the last 12 months local shops have invested £605million in improving services, making their businesses more sustainable, and creating secure local jobs.”

CAMRA Chairman Nik Antona said, “The Chancellor’s announcement that the new rate of duty for draught beer and cider will go ahead from August 2023 is fantastic news for the great British local as the tax system will recognise that beer, cider and perry served in a pub or social club should be taxed at a lower rate to alcohol bought in the likes of supermarkets.

“Crucially, this new lower rate of tax for draught beer and cider will now apply to containers of 20 litres and over and bag in box products – and not the larger 40 litre containers originally planned for – meaning smaller breweries, cider producers and pubs can all benefit.”

“This groundbreaking policy should help pull consumption into pubs, clubs and taprooms helping to encourage pub-going and keeping our beloved locals viable, alive and thriving.

“We are also delighted to learn that the Treasury will consult on changes to the definition of cider for tax purposes. We will be making the case for all cider to contain at least 50% fresh fruit juice, to ensure that consumers are getting a high-quality product, and to create renewed demand for acres of orchards that are currently being wound down at detriment to our natural environment.'

Emma McClarkin, Chief Executive of the British Beer and Pub Association, said, “We welcome the steps taken by the Government in the Chancellor’s fiscal statement.

'The measures announced today will mean a boost of £500m for our sector, enabling growth following successive crises and allowing us to thrive in the future. Coupled with this week’s intervention on energy bills, these commitments will make a significant difference to our pubs and brewers at an acutely difficult time.

“The Chancellor’s plans show that the Government recognises how extreme the cost of doing business has become and the enormous investment our sector makes, not only in the economy, but to the social fabric of communities across the breadth of the UK and why it must be protected.

'We look forward to the continued reduction of taxation on the sector at the next Budget - the need for a reduced VAT rate for hospitality and business rates reliefs remain as strong as ever.

“We will continue to work with the Government to ensure that reforms to the draft beer duty rates are brought forward as soon as possible, meaning that our pubs and brewers can contribute to, and be at the heart of villages, towns and cities for many years to come.”

UKHospitality CEO, Kate Nicholls, commented, “The stated objectives of boosting growth and tackling inflation rightly put business at the heart of the Govt’s agenda, but today’s measures will take time to take effect.

“The Chancellor committed to making the UK a globally competitive tax regime, yet overlooked two obvious levers to achieve that, through lower VAT and business rates reliefs. Our VAT rate is the highest in Europe, which is starkly at odds with ambitions for global tax competitiveness and will hopefully be addressed in the autumn Budget, if not before.

“While tax free shopping for overseas customers is a welcome step to attract overseas tourists, a far more immediately impactful step would be to reduce VAT for our domestic customers. Our VAT rate is the highest among modern economies, so if we want a globally competitive market, we need lower VAT and an equitable alternative to business rates. Without such measures - which would help to keep prices down for customers - thousands of businesses and many more jobs will be lost.

“Confirmation of the energy and NIC proposals will allow our businesses to better plan for survival. Indeed, today’s announcement includes a number of positive measures which will bear fruit in due course, but more is urgently needed to help struggling businesses survive through the winter. There’s a clear shortfall between the positive tax plans and the lack of needed immediate business support.”

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, “The Chancellor’s announcements should help to shore up consumer demand going into what will be a challenging winter for households and businesses alike. The Energy Bill Relief Scheme, set out earlier this week, and announcements on National Insurance and Corporation Tax will help retailers shield their customers from some of the effects of inflation.

'Furthermore, we welcome the reintroduction of tax-free shopping for tourists, which will boost sales and bring the UK back in line with other European nations.

“Retailers are facing immense cost pressures, not just from energy bills, but also a weak pound, rising commodity prices, high transport costs, a tight labour market and the cumulative burden of government-imposed costs. Yet what was missing from today’s announcement, was any mention of business rates, which are set to jump by 10% next April, inflicting another £800m in unaffordable tax rises on already squeezed retailers.

'It is inevitable that such additional taxes will ultimately be passed through to families in the form of higher prices. There is still time for the government to act. Freezing the business rates multiplier will stimulate investment and will allow retailers to focus on what’s important - keeping prices down for households.”

Steve Alton, CEO of the British Institute of Innkeeping commented, “The announcement by the Chancellor does not address the vulnerability of our members’ pubs in every community. The energy price guarantee, whilst welcome, will see most pubs at least doubling their energy costs from last year in addition to the inflationary pressures on their costs of doing business.

“We are hopeful that a number of his measures will support consumer confidence and maintain demand at this now critical period of trading. His recognition of too many barriers to enterprise must now also translate into radically reduced regulation allowing our members to trade fully and freely alongside delivering a significant reduction in the ongoing disproportionately high business rates that our members pay.

“We will continue to engage and make the case to Government for our members as they conduct their review into vulnerable sectors with the Prime Minister having previously referenced our local pubs. Simply without further support many pubs will fail.”