I recognise the crucial role that pubs play in the social and economic life of our community here in Cheltenham, and I share your concern about the future of pubs and the hardship caused by the coronavirus outbreak. It has been a very difficult eighteen months and I know just how worried people have been – not just about their health, but about their livelihoods as well.
Significant support has been provided to Cheltenham pubs, as part of an overall package of Government support to Cheltenham alone valued at over £350m. On top of cash grants and business rates waivers (which saved Cheltenham businesses alone over £30m) one-off Restart Grants were made available worth up to £18,000 for hospitality, leisure, accommodation, personal care and gym businesses. Building on this, 66 percent business rates relief and a reduced 12.5 per cent VAT rate are in place until the end of March 2022.
A ban on commercial evictions has been extended until 25 March 2022 to help protect tenants who are unable to pay. Additionally, I am told that legislation will be brought forward to ringfence outstanding unpaid rent accumulated while businesses have had to remain closed during the pandemic.
I appreciate that there have been calls for a specific additional support package for pubs, such as a cut in beer duty served in pubs, applying the VAT reduction to alcoholic drinks and further extending the business rates holiday for a second full financial year. However, the Chancellor is hopeful that the existing support, together with the Government’s long-term strategy will help breathe new life into our pubs.
For example, temporary pavement licence provisions introduced during the pandemic, which have made it easier and cheaper for pubs, restaurants and cafes to make outdoor dining a reality, will be extended, with an intention to make them permanent. Temporary permissions for the off-sale of alcohol are also being extended for a further 12 months, providing pubs with more flexibility.
In addition, I welcome the Chancellor’s announcement at the March Budget 2021 that, for the second year running, alcohol duties will be frozen, covering duty on spirits, beer, wine, and cider which will save drinkers £1.7 billion. I am encouraged that the Government and the Treasury recognise the importance of supporting our pubs and keeping costs down for customers.
I have conveyed your concerns to my colleagues at the Treasury, who assure me that alcohol duties are kept under review; I will continue to monitor the situation closely ahead of the Budget.