Freezes on alcohol and fuel duty announced in the Budget should come as a major relief for the hospitality sector in the southwest, says MP Ian Liddell-Grainger.
The Bridgwater and West Somerset MP was one of a number of politicians who urged the Chancellor to do whatever possible to help the region’s 8,000 hospitality businesses continue their post-pandemic recovery.
And, he says, the measures announced should at least help stabilise the sector which has been badly hit by rises in energy costs in the last 12 months.
“Far too many country pubs have gone, far too many restaurants have pulled down the shutters,” he said.
“And I know of a number of hotels which are still only just managing to stay afloat by cutting operating costs to the bone while still trying to provide top-quality service for their guests.”
Mr Liddell-Grainger said the fuel duty freeze should help visitors adjust to the costs of driving to the southwest, given that undertaking such a journey could eat into some families’ holiday budget to the tune of hundreds of pounds.
“But I am particularly grateful that the duty on alcohol has been pegged as well,” he said.
“When pubs were closed during the pandemic many customers discovered it was cheaper to drink at home, and have never returned. And there is still a fairly daunting differential between what a pub charges and what is available on the supermarket shelves.
“Supermarkets which trade in millions of litres of alcoholic drinks are far better equipped to absorb the effects of a duty increase by spreading the impact across other lines.
“The same doesn’t apply to pubs where alcohol sales provide the main income stream and where duty increases absolutely must be passed on in full.
“I am glad the Chancellor has listened to those of us warning of the fragile state of the hospitality sector and has done what he can to keep it on track to full recovery.”
