Alcoholic Drinks: Excise Duties
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing (a) beer duty and (b) other alcohol duties for pubs.
Answered by James Murray
Pubs make an enormous contribution to our economy and society, and this is recognised in the tax system.
Draught Relief provides a duty discount for all draught products below 8.5 per cent alcohol by volume (ABV). Around 60% of alcoholic drinks served in pubs are covered by this relief.
At the Autumn Budget, the Chancellor increased this relief from 9.2% to 13.9%. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint.
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