Duty freeze and coronation plans a double boost for hospitality
22/12/2022
The hard-pressed hospitality industry has received a double boost, with the announcement of plans for an extension to the current freeze on alcohol duty to 1 August 2023 and an extension to licensing hours for the King’s coronation.
The current freeze was announced in Autumn Budget 2021, saving consumers over £3 billion over five years. It was expected to come to an end on 1 February 2023.
It follows the news that pub licensing hours are set to be extended under proposals published by the Government to mark the coronation of King Charles and the Queen Consort on 6 May next year.
The consultation will propose extending licensing hours from 11 pm to 1 am from Friday 5 to Sunday 7 May in restaurants, pubs, clubs and bars in England and Wales
Historic opportunity
The event could provide an opportunity for hospitality venues to take advantage of spring weather with a series of indoor and outdoor royal-themed events. These could include:
- Allowing tables to be booked outside, giving a more exclusive feel, particularly in garden areas.
- Decorating venues with royal bunting or props to create an inclusive atmosphere.
- Setting up giant screens to allow people to watch the action on inside and outside TVs.
- Providing music like live bands to mark the occasion.
In a statement on the alcohol duty freeze to the House of Commons, Exchequer Secretary to the Treasury, James Cartlidge said that any decision regarding duty rates will be held until Chancellor Jeremy Hunt delivers his Spring Budget on 15 March 2023. But he outlined that if any changes to duty are announced then, they will not take effect until 1 August 2023.
Positive news
Trade body UKHospitality Chief Executive, Kate Nicholls, said: “The King’s coronation is an event that millions of people across the UK will want to celebrate.
“We’re therefore urging the Home Office to go ahead with plans to extend licensing hours in England and Wales for the coronation Bank Holiday weekend. Any extra trading time for venues can make a vital difference as the sector looks to revive itself and drive wider economic recovery and employment.”
She added that it was positive news that the Government confirmed there will be no change to alcohol duty until 1 August – deferring what would have been an RPI increase.
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