The recent Autumn Statement by UK Chancellor Rachel Reeves has brought mixed news for the Isle of Man’s hospitality industry.

As part of her first Budget announcement, Mrs Reeves confirmed that alcohol duty rates for non-draught drinks will rise in line with the Retail Price Index (RPI) starting February 1, 2025.

This increase will impact packaged beer, wine and spirits.

However, in a modest relief for pub-goers, the Chancellor announced that duty on draught drinks, such as beer served on tap, will be reduced by approximately a penny per pint (based on a 4.58% ABV).

Okell’s Inns, which owns and manages around 30 pubs across the Isle of Man, responded to the announcement, stating it adds ‘yet another challenge for UK hospitality businesses’.

A company spokesperson said: ‘Following the UK Chancellor’s announcement of a 1.7% reduction in draught beer duty - the ‘penny off a pint’ - our first step is to confirm whether UK suppliers will pass on this change.

‘From there, we’ll need to assess the broader impact alongside rising costs, including increased duty on packaged beer, employment and NI, business rates, energy and ingredients.

The statement from Okell’s Inns highlights the complexity of the situation for pubs and bars, many of which have already been facing considerable financial strain because of escalating operational costs.

‘This Budget brings yet another challenge for UK hospitality businesses - establishments at the heart of their communities, which have invested heavily despite unprecedented challenges in recent years’, the spokesperson added.

Okell’s Inns say it will be ‘closely monitoring how this impacts the Isle of Man’.

On a hopeful note, the spokesperson noted the collaborative initiatives underway within the island’s hospitality sector.

‘Our local industry is collaborating more than ever, with initiatives like the Isle of Man Hospitality Board and the recent work by the LVA and DfE earlier in the year.

‘I hope these efforts will help address some of the challenges we face.’