U.K. Pub Stocks Jump as Sunak Cuts Beer Duty, Business Rates

Pints of beer sit on a table at The Moon Under Water pub, operated by J D Wetherspoon Plc, on Leicester Square in London, U.K., on Saturday, July 4, 2020. Restaurants, hotels, cinemas and hairdressers will also be allowed to open their doors again on what has been dubbed 'Super Saturday' after 3 1/2 months of an economic lockdown brought in to contain the outbreak. Photographer: Simon Dawson/Bloomberg , Bloomberg

Joe Easton, Bloomberg News

Oct 27, 2021

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(Bloomberg) -- Shares of Britain’s pub operators rallied as Chancellor of the Exchequer Rishi Sunak announced lower taxes on beer in his autumn budget. 

J D Wetherspoon Plc rose as much as 6.4%, the most in more than seven months, while peers Mitchells & Butlers Plc and Marston’s Plc added 5% and 7.1%, respectively. 

Sunak said alcohol would now be taxed according to strength, with the main duty rate cut too. That will mean a lower rate of duty on draft beer and cider, he said.

The budget brought a double boost for the pub trade, with Sunak also announcing a 50% business rates discount for the hospitality and leisure, and retail sectors. 

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