Wetherspoon's share price soars after Chancellor cuts 'beer tax' and extends business rates relief

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The share price of JD Wetherspoon and other big hospitality businesses soared on Wednesday after Rachel Reeves cut tax on draught drinks and extended business rates relief.

The Chancellor said in her Budget announcement that the government would cut draught duty by 1.7%, which she said means "a penny off a pint in the pub".Ms Reeves also announced 40% relief on business rates for retail, hospitality and leisure businesses from 2025/26.JD Wetherspoon's share price rose 6% on the start of the day during the Chancellor's Budget speech, before falling again afterwards.The company's share price is still down over 5% over the past five days.

Announcing the tax cut, the Chancellor told the Commons: "I can confirm that alcohol duty rates on non-draught products will increase in line with RPI from February next year, but nearly two-thirds of alcoholic drinks sold in pubs are served on draught."So today, instead of uprating these products in line with inflation, I am cutting draught duty by 1.7%, which means a penny off a pint in the pub.

 

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