Beer: Excise Duties
The question
To ask the Chancellor of the Exchequer, whether she plans to reform beer duty by reducing duty on beer sold in barrels while increasing duty on bottled beer; and what assessment she has made of the potential impact of such an approach on (a) supporting pubs and local breweries, (b) reducing packaging and recycling waste and (c) encouraging alcohol consumption in supervised settings.
Answered by Dan Tomlinson
A new duty structure for alcohol products was introduced in August 2023. This included the introduction of Draught Relief, which enables products served on draught below 8.5% alcohol by volume (ABV) to pay less duty. This relief provides vital support to pubs and other venues, whilst also helping breweries that supply eligible products.
This Government is proud to have been able to expand the generosity of Draught Relief this parliament. The Chancellor’s draught rate cut announced at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs, with draught beer and cider now paying 13.9% less in duty than their packaged equivalents.
The Chancellor makes decisions on future tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process.
This Government is also committed to moving towards a circular economy that delivers sustainable growth, and produces less waste, rubbish and litter. Implementing the Government’s Collection and Packaging Reforms, including Packaging Extended Producer Responsibility (pEPR) and the Deposit Return Scheme, is a critical step in this transition that will create a substantial incentive for investment in new and improved recycling services in the UK.
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