Alcohol tax will help and hinder pubs around Suffolk

On Tuesday, August 1, the government introduced an alcohol tax with drinks with a higher alcohol by volume (ABV) content costing more, while weaker drinks are cheaper.

This means that drinks such as wine and spirits will be more expensive, while lower-alcohol drinks and most sparkling wines will be cheaper.

Taxes on draught pints will not change, a measure designed to support pubs.

Steven Wells, the owner of Shamrock Pub in Ipswich, said: "Fortunately, we are quite a draught-dominant pub so it is quite a positive situation for us.

L-R: Gus Chrysomalis, Frank McFadden and Steven Wells - the team at Shamrock. Credit: Newsquest (Image: Archant)

"It will mean a marginal increase in the cost of spirits but we are going to try and hold off until September to make those changes.

"In terms of the tax, from our perspective, it makes things a little bit more clean and rational because it is banded on alcohol strength.

"If we were selling an 8% drink, I would probably have a very different view of it because it would hurt that trade, but for a pub with a range of drinks and customers, I would put it at a marginal benefit."

Fergus Fitzgerald, production director at Adnams, based in Southwold, said: "The overall effect of the duty changes will mean an increase in the cost of most beers, wines, and spirits.

Fergus Fitzgerald. Credit: Newsquest (Image: Newsquest)

"In wine, moving to a system that taxes based on alcohol content does bring the category in line with beer and spirits, but it will result in higher immediate costs and a more complex system in future.

"There is a welcome reduction for beers under 3.4% which should benefit cask beer particularly, and holding duty on draught beer is an important principle that we support.

"But neither of these changes will negate the huge increase in cost that breweries and pubs have faced in the last 12 months."