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Pub owners in Cornwall ‘insulted’ by 1p beer tax change.
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Pub owners in Cornwall ‘insulted’ by 1p beer tax change.

BBC A man wearing a blue shirt stands outside a brightly lit barBBC

Gary Holden, who runs three pubs in Cornwall, is worried about the rising costs of National Insurance for employers.

A landlord who runs three pubs in Cornwall and employs 92 people says the rise in employers’ National Insurance (NI) contributions will cost his business £44,000 a year.

Gary Holden, who is a spokesman for the British Institute of Innkeeping, said the 1 pip cut in pint beer tax would not reduce the price of a pint.

Another Cornwall pub manager said the Budget’s focus on beer tax cuts was “insulting” to the pub industry.

Chancellor Rachel Reeves said the NI increase was needed to bring stability to the economy, but she conceded could affect workers’ wages.

“Expect price increases”

Mr Holden, who runs three pubs as a tenant of the St Austell Brewery, said the budget would see pub prices rise.

“The 1p draft beer tax cut, which is used as a headline, is a problem for me – please don’t think the price of a pint is going to go down,” he said.

“The increase in National Insurance contribution will cost us as a business £44,000.”

Following the budget, Also, the national minimum wage is to be increased to £12.21 an hour next year, driving up a pub’s running costs even further.

“Expect some price increases, it’s inevitable that’s going to happen,” Mr Holden said.

A blonde haired woman wearing a white sweater standing in front of a fire in a pub

Lara Trubshaw, manager of the Peterville Inn, said the budget was more painful than expected

Lara Trubshaw, who runs the Peterville Inn in St Agnes, said the budget “was a lot more painful than even we predicted”.

She described the 1p tax cut on pint beer as “insulting”.

She said: “For people to think there will be a drop in the price of beer when there have been so many other price increases applied to our industry.

“With National Insurance going up, the minimum wage going up and business rates going up, that anyone thinks there’s going to be a drop in prices is frankly laughable.”

“Invest in the future”

Prime Minister Keir Starmer said the government must do “what is responsible to repair the foundations and rebuild our country”.

“The principles we are putting into practice are to stabilize our economy and invest in the future, along with reform,” he said.

He said it would lead to investment in the NHS, schools, housebuilding and other areas.