A package of support to help the alcohol sector to grow will
tomorrow (1 February) take effect.
Draught relief has increased to knock 1p off duty on draught
products whilst small producer relief – a measure to encourage
craft brewers to innovate - is becoming more generous.
Together these tax cuts are worth £85 million and are tailored to
support the alcohol sector to innovate and grow.
The increase to draught relief, first announced at Autumn Budget,
will affect around three in five of all alcoholic drinks sold in
pubs, and represents the first duty cut on a pint of beer in 10
years.
This is part of the Prime Minister's Plan for Change that will
rebuild Britain for the future by boosting economic growth.
Exchequer Secretary to the Treasury, , said:
“Our pubs and brewers are an essential part the fabric of the
UK and our brilliant high streets. Through draught relief, small
producer relief, and expanding market access for smaller brewers,
we will help boost sector growth and deliver our Plan for Change
to put more money in working people's pockets.”
Richard Naisby, Chair of the Society of Independent
Brewers and Associates (SIBA), said:
“The Government's increased investment in Draught Relief
means that draught beer sold in our community pubs has a lower
rate of alcohol duty than beer sold in supermarkets and should
encourage more people to support their local. At the same time by
going further on Small Producer Relief, the Government can help
small breweries to compete and grow their businesses.
“While these support schemes have kick started innovation and
enabled small breweries to set up, many breweries struggle to get
access to the vital pubs market so they can expand. The
Government's review will examine ways to address these access
issues and ensure that landlords can access the beers their
customers want and small breweries can grow.”
Exchequer Secretary to the Treasury visited the Queen Edith pub in
Cambridge to welcome the incoming tax relief alongside Andy Slee,
Chief Executive of the Society of Independent Brewers and
Associates (SIBA) and Richard Naisby, Chair of SIBA and Founder
and Managing Director of the Milton Brewery.
The Minister discussed during his visit in depth various growth
measures to help the sector, including an increase in the
generosity of small producer relief. This cuts duty for the UK's
smallest, most innovative breweries and cider makers by up to
more than 90%, further supporting growth.
also discussed how the
government will consult in the future to encourage small brewers
to retain and expand their access to UK pubs, maximising
drinkers' choice and supporting local economic growth, including
through provisions to enable more ‘guest beers'.
Fees charged by the Spirit Drinks Verification Scheme will be
reduced in the future and mandatory duty stamps for spirits will
come to an end from 1 May 2025. This will help distilleries,
including Scotch whisky makers, badge their products, increasing
their chances to sell their products through pubs and
supermarkets.
As announced at the Autumn Budget, alcohol duty has today also
been increased in line with inflation. This helps sure up public
finances and helps to fund the investment needed to grow the
economy and fund public services.
ENDS
Notes to editors:
- Draught relief means alcohol duty on draught products below
8.5% ABV will be cut by 1.7% in cash terms (5.1% compared to the
baseline RPI uprating). This is the equivalent of a 1p duty
reduction on an average 4.58% pint.
- Small producer relief (SPR) is available for products
<8.5% ABV, and tapers away the more alcohol is produced, so
the greatest relief – 91.5% - is provided on the first five
hectolitres of pure alcohol for beer producers.
- At the Autumn Budget, the government agreed to achieve parity
in SPR discount for draught and non-draught products by
increasing the generosity of the relief for non-draught products.
