THE owner of a Tynedale pub has described the announcement that a freeze on alcohol duty has been extended for a further six months as 'too little, too late' for the sector.

Treasury minister James Cartlidge told the Commons on Monday (December 19) the extension would give 'maximum certainty' to the industry ahead of challenging times, and would avoid multiple changes in a year when the Government also plans to reform the alcohol duty system.

But Matt Cawood, owner of Boatside Inn at Warden, said that freezing alcohol duty 'won't make a massive difference' to pubs currently struggling.

"It's like putting a sticky plaster on a gunshot wound," he said.

"I think really the only way to save businesses like ours is a massive reduction in VAT, down to maybe five per cent.

"VAT is the biggest killer for a lot of people's cash flow."

He said while December has been a good month for the pub and people are still coming out, the average spend per customer is "much, much lower than it was back in 2019".

"That's really the last comparable year," he said. "I think people are generally being much more cautious.

"And you get the impression that come January customers are really going to hibernate.

"They're making the most of the December period but I think come January a lot of people are going to just reduce their spending in terms of hospitality."

Hexham Courant: Matt Cawood, owner of the Boathouse Inn at Warden [pictured 2018]Matt Cawood, owner of the Boathouse Inn at Warden [pictured 2018] (Image: Paul Norris)

He added: "We are really concerned that if things stay the way they are during the next quarter [January through to March], then the business simply won't survive.

"I'm generally quite a cup half-full sort of guy, but not these days, I'm afraid, in terms of being worried about the future."

Jackie Sewell, owner of the Bird in Bush pub in Elsdon, said while "every little bit of help is more than welcome", she also said that the "killer for hospitality" is VAT.

"If they can reduce it, even slightly, it would definitely make a difference," she said.

Jackie added that the pub has been quieter than they expected in December.

"You would expect Christmas to be really busy, but it's not," she said. "People just don't have any money - that's the reality.

"People are very supportive, but people are on limited budgets."

A HM Treasury spokesperson said: "We have frozen alcohol duty for a further six months as part of our commitment to responsible management of the UK’s economy, to reassure and provide certainty to pubs, breweries and distilleries facing tough challenges ahead.

"We are also protecting firms from rising inflation and cutting their bills through business rates relief, the Energy Bill Relief Scheme, which will save the typical restaurant 40 per cent on energy bills this winter, and a £2.4 billion fuel duty cut."