In response to Chancellor Rachel Reeves’ recent announcement of a 1p cut in draught beer duty, Kyle Hamilton, manager of the Flying Duck pub in Ilkley, is giving away a penny with every pint sold. Hamilton set up an honesty box at the bar for patrons to take a penny after each purchase, although he expressed skepticism that the duty cut would significantly impact drink prices.
The duty reduction was unveiled during Reeves’ budget announcement on Wednesday, part of a broader strategy to stabilize public finances. However, Hamilton criticized the move as “nominal,” suggesting it would not translate into noticeable savings for consumers.
“I don’t think consumers are necessarily going to see that penny directly,” Hamilton said. “But we are putting an honesty box at the bar where people can help themselves to a penny after every pint they buy. They can feel it that way, but on a large scale, it’s a very nominal effect.”
In discussing the budget, Hamilton noted that other measures, such as an increase in employers’ National Insurance contributions and a rise in the minimum wage, would have a more substantial effect on small businesses like his own. “A lot of pubs are struggling as it is,” he remarked, pointing to changing drinking habits and the ongoing cost-of-living crisis as significant challenges.
To keep the Flying Duck afloat, Hamilton is employing various strategies, including brewing beer on-site and hosting live music and quiz nights. Despite the financial challenges, the pub is committed to community support. Their upcoming beer festival from November 8-10 will not raise funds for the pub itself but will benefit local children’s football teams. The event will feature free brewery tours, live music, and rock ‘n’ roll bingo throughout the weekend.
The budget changes also include an increase in the National Insurance rate that employers pay, rising from 13.8% to 15% on earnings above £175 starting in April. Additionally, the threshold for employers to start paying the tax will decrease from £9,100 to £5,000 annually. Despite these increases, Chancellor Reeves announced an extension of the Employers Allowance, allowing businesses to claim back more from their National Insurance bill, raising it from £5,000 to £10,500.
The expected rise in National Insurance contributions is anticipated to generate £24 billion, accounting for over half of the total tax increases outlined in the budget. As pubs like the Flying Duck navigate these changes, Hamilton’s penny offer reflects both a playful gesture and the tough reality many in the hospitality sector face.
