Pubs and hospitality venues have received a tax saving today as a
six-month alcohol duty freeze takes effect.
British pubs are a significant part of the fabric of communities
across the UK and a further freeze on alcohol duty will help to
support the sector while the government continues to bring down
inflation while driving growth and investment.
This will impact around 38,175 pubs across the country and was
announced as part of a multi-billion support package by
Chancellor in his Autumn Statement which
also included £4.3 billion business rates relief.
Exchequer Secretary to the Treasury, , said:
“The great British pub remains a critical part of communities
across the country, that’s why we’re helping to keep costs low by
freezing alcohol duty, reducing business rates, and supporting on
energy costs.
“Our decisive action has also helped to more than halve inflation
last year, protecting pubs and other businesses from the higher
costs they would have otherwise faced.
"And we need to stick to our plan, so we can deliver the
long-term change our country needs to deliver a brighter future
for Britain, and improve economic security and opportunity for
everyone.”
The six-month duty freeze, from 1 February to 1 August 2024,
follows the biggest reform of alcohol duties taking effect last
August, where, for the first time in over 140 years the UK’s
alcohol duty system simplified so the duty paid reflects the
amount of alcohol in it.
These reforms cut duty on pints in pubs by up to 11p when sold in
supermarkets. Not increasing alcohol duty in line with inflation
has now saved a further 3p to the duty on a typical pint of beer,
2p to a pint of cider, 4p to a glass of whisky, or 18p to a
bottle of wine.
Welcoming the decision by the Chancellor to freeze
alcohol duty, Nuno Teles, Managing Director, Diageo Great
Britain, said:
“By freezing duty until August, HM Treasury has listened to the
industry’s plea for support and decided to back our homegrown
sector, that employs so many people across the UK, and we urge
the Chancellor to continue to back pub-goers, hospitality owners
and producers.”
Andy Slee, Chief Executive of the Society of Independent Brewers
(SIBA) said:
“While trading has been tough for pubs and independent breweries,
the Government’s continued support is very welcome. The beer duty
freeze for six months provides some certainty for brewers as the
new alcohol duty system is embedded.
"As part of this, the Government introduced Draught Relief
allowing beer destined for the pub to have a lower rate - and
already there are signs that this is working to support pubs.”
The duty freeze formed part of a multi-billion pound support
package for the alcohol duty industry announced at the Autumn
Statement.
Retail, Hospitality and Leisure business rates relief was
extended for a fifth year to 2024-25. This means around 230,000
retail, hospitality and leisure properties will receive 75%
relief, up to a cap of £110,000 per business, on their business
rates bills from the 2024-25 tax year. This is a tax cut worth
nearly £2.4 billion and comes on top of one third of business
properties being taken out of paying business rates completely
thanks to other government reliefs.
The small business multiplier for business rates was also frozen
for a fourth consecutive year, protecting over a million
ratepayers from an inflation increase in their bills.
August 2023’s historical alcohol duty reforms saved on taxes in
three ways. Firstly, on draught drinks in the pub for all draught
products below 8.5% alcohol by volume (ABV) through increasing
Draught Relief. This is part of this government’s Brexit
Pubs Guarantee commitment for every pint in every pub
to pay less duty than their supermarket equivalent. Secondly, tax
was cut on lots of popular drinks in shops like sparkling wines
and ready-made drinks. Finally, the new Small Producer Relief was
announced to help small businesses and start-ups create new
drinks, innovate and grow.
Notes to editors
- Extending the freeze on alcohol duty will support pubs and
the wider sector to continue generating investment, growth and
employment opportunities while they adapt to the new system.
- The 2023 business rates revaluation will update rateable
values to ensure bills more closely reflect the commercial
property market and means the burden of rates is fairly
redistributed across all non-domestic properties. New bills came
into effect from 1 April 2023.
- Read the final business rates review report: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1028478/BRR_final.pdf
