Labour’s ‘war on fun’ means ‘dry January has come early’ | Politics | News
Labour’s “war on fun” means “dry January has come early”, the Conservatives claim as mounting costs on the drinks industry push up prices. The Tories warn that the “typical pub” with eight employees now faces an additional £7,200 added to its annual wage bill as a result of Chancellor Rachel Reeves hiking up employers’ National Insurance contributions.
An analysis by the Conservative party found the price of a bottle of gin had gone up by as much as 45% with sherry climbing by up to 25%.
“Labour’s choices explain why Christmas is costing more,” the Conservatives claim, stating: “When the Government hikes taxes to record levels, raises the cost of employing staff through a National Insurance jobs tax, and piles new regulatory burdens onto businesses, those costs feed directly into the price of goods and services. Pubs, producers, and retailers facing higher wage bills and compliance costs are left with little choice but to pass them on – higher prices for everything from a pint in the pub to a bottle of gin on the Christmas table.”
The Tories accuse Labour of pushing taxes “far beyond what was set out in their manifesto” despite “repeated assurances that working people would be protected”.
Warning that the hike in National Insurance increases “the cost of employment by around £900 for the average worker”, the party says the impact on hospitality businesses is “immediate and severe”.
Shadow Business Secretary Andrew Griffith said: “It’s meant to be the festive season, but sadly dry January has come early thanks to Labour’s war on fun.
“Labour have launched a £66billion tax raid and piled red tape onto pubs, producers, and retailers. Those costs show up on the shelf and at the bar. Labour’s war on business is ending up as a tax on Christmas cheer.
“Only the Conservatives have set out a clear path to cut spending, protect business and ensure that hard-working British taxpayers can afford to the joys of Christmas.”
The Tories point to reports one in eight leaders of small and medium-sized are planning to relocate themselves or their businesses abroad and warn the country’s tax burden could “reach 38.3 per cent of GDP, the highest level in modern British history”.
A Treasury spokesperson hit back, saying: “We’re protecting pubs, restaurants and cafés with the Budget’s £4.3billion support package. Without this support, pubs would face a 45% increase in the total bills they pay next year.
“Because of the support we’ve put in place, we’ve got that down to just 4%. This comes on top of our efforts to ease licensing to help more venues offer pavement drinks and put on one-off events, maintaining our cut to alcohol duty on draught pints, and capping corporation tax.”
