Public Houses: Employers' Contributions
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of changes to the level of employer's National Insurance contributions at the Autumn Budget 2024 on the average cost of a pint of beer in a pub.
Answered by James Murray
A Tax Information and Impact Note on the changes to employer NICs was published on 13 November alongside the legislation when it was introduced to Parliament.
The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October 2024 Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels.
Pubs and breweries make an enormous contribution to our economy and society, and this is recognised in the tax system.
At the Budget, the Chancellor cut alcohol duty on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint. This reduction increased the relief available on draught products to 13.9%.
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