SIBA is calling on the new Labour government to confirm that the new alcohol duty system will be reviewed after three years. Research shows it has an impact on the beer produced by more than half of breweries.
The previous government pledged that the changes would be fully considered in 2026. The Society of Independent Brewers and Associates (SIBA), representing a number of the UK’s small and independent brewers, is asking the government to commit to this deadline to ensure that the changes are properly evaluated.
“One year ago, the government introduced the most radical changes to the alcohol duty system in generations, which is having an impact on what independent breweries brew and what consumers get to enjoy,” said SIBA chief executive Andy Slee.
“While it is too early to understand the full implications of the changes, we are already seeing that large global companies have significantly reduced their duty bills by benefiting from the new lower rate, and that small independent breweries are stopping or reducing production of innovative beers such as imperial stouts. Global cider producers also continue to benefit from a significantly lower rate of duty than beer.”
Under the new system, Small Breweries Relief , which helped small breweries to compete with global companies, was radically modified and extended to other products under a new Small Producer Relief. It also created a new draught relief, where cask and keg beer destined for the pub is given a 9.2% reduction in alcohol duty.
The new alcohol structure is already having an impact on what small breweries are producing. Changes meant that strong beers, such as imperial stouts and some double IPAs, are no longer eligible for relief. Research by SIBA shows that, in response, nearly a quarter (22%) of independent breweries have altered their beers above 8.5% ABV, with 7% reducing the ABV and 15% have either stopped producing some beers or all beers over 8.5% ABV.
It also introduced a new lower alcohol band at 3.4% ABV, which gives a discount on duty to lower strength beers. More than a quarter (27%) of independent breweries have either introduced new beers (18%) or reduced the strength of their existing beers (7%) in response. Several Global breweries have also dropped the ABV of their beers, reducing their duty bill by millions of pounds.
Andy added: “It’s important that the new system is fully reviewed after three years so that any distortions or issues are understood and addressed, and I hope that the new government will commit to this review in 2026.”
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