The Policy & Resources Committee’s 2027 Budget proposes increasing general alcohol duty by inflation plus 2%, despite calls from the Economic Development Committee and the Guernsey Hospitality Association for a real-terms freeze. If agreed, a 6.3% increase would put between 4p and 10p on the price of a pint.
P&R said the increase would support States revenues and public health. Alongside this, it proposes introducing ‘tap relief’ next year for qualifying draught beer, cider and wine. Lower-strength products would receive a 15% duty discount and higher-strength products 10%, with the strongest alcohol excluded.
GHA president Alan Sillett said the association was disappointed its calls for a freeze had not been heeded.
‘We welcome the proposed tap relief on qualifying draught beer, cider and wine as a positive step towards supporting pubs, bars and restaurants,’ he said.
‘However, this targeted relief needs to be considered alongside the wider increase in alcohol duty, which will continue to put pressure on businesses already facing significant cost challenges.’
Liberation Group’s Channel Islands operations manager Rob Kerslake-Smith also welcomed the proposed draught duty reduction, but questioned an above-inflation general increase.
‘Hospitality businesses are already facing significant pressure from operational costs,’ he said.
‘We have to remember that our pubs are more than somewhere that people go for a drink. They employ people, contribute to the economy and play an important part in our community.’
He was concerned that making drinking in pubs more expensive, while supermarket alcohol remained considerably cheaper, could encourage more people to drink at home.
‘From a public health perspective, I would argue that encouraging people into well-managed, licensed premises where alcohol consumption is monitored and staff are trained to recognise irresponsible drinking, is part of the conversation.’
Steve Le Poidevin, owner of bar and restaurant Balthazar, shared the same concerns. He would like to see minimum pricing per unit of alcohol applied to both supermarkets and licensed premises, so as not to direct people towards at-home drinking.
‘If public health is the aim, addressing very cheap alcohol deserves consideration alongside repeatedly increasing duty,’ he said.
‘An inflation plus 2% increase in general alcohol duty feels like another penalty for an industry already facing rising costs across every part of the business, with GST also looming. Hospitality is a valuable part of Guernsey’s economy, supporting jobs, suppliers and our visitor offering.’
He called for the States to show more recognition of this through stronger support.
‘We need government support to recover and grow, rather than feeling like the easy option whenever more revenue is needed. The importance of pubs and restaurants to community life is increasingly being recognised in the UK. Surely it is time our own government leaned in and showed meaningful, sustained support too.’
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