The freeze to UK alcohol duty rates has been extended by six months to 1st August 2023, the government has announced.
The news came in a statement to the House of Commons by the Exchequer secretary to the Treasury, James Cartlidge. He said the plan was designed to provide certainty and reassure pubs, distilleries, and breweries, as they face a challenging period ahead.
While new duty rates usually come in on 1st February each year, Mr Cartlidge set out that this year the duty rates decision will be held until the chancellor, Jeremy Hunt, delivers his spring Budget on the 15th March.
The minister also made clear that if any changes to duty are announced then, they will not take effect until 1st August. This is to align with the date historic reforms for the alcohol duty system come in, and amounts to an effective six-month extension to the current duty freeze.
Mr Cartlidge said: “The alcohol sector is vital to our country’s social fabric and supports thousands of jobs. We have listened to pubs, breweries, and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system taking effect from August.
“That’s why we have acted now to give maximum certainty to industry and confirmed there will be just one set of industry-wide changes next summer.”
Richard Naisby, chair of the Society of Independent Brewers, said: “Independent breweries play a vital role in the British hospitality industry and are embedded in their local communities, providing jobs and adding greatly to local economies across the UK.
“The extension of the beer duty freeze will come as welcome news to these vital independent businesses, providing some certainty until the summer. But with breweries facing pressure from every direction and energy costs spiralling, we would urge the government to go further to ensure the number of breweries in the UK doesn’t continue to decline.
“Independent brewers would like to see the new draught beer duty relief increased from 5% to 20% when it is introduced next summer, to give our struggling pub industry a shot in the arm, as well as continued support for independent breweries under the energy bill relief scheme.”
Emma McClarkin, chief executive of the British Beer & Pub Association, said: This freeze will allow £180m to be re-invested into our sector at a critical moment and inject a much-needed flurry of festive cheer for pubs and breweries. It shows the government understands just how much our pubs and brewers mean to communities across the UK.
“Investment in our sector now will pay dividends in villages, towns, and cities across the country, for generations to come. Pubs and brewers are a crucial thread in the social fabric of our society and contribute not only economically, but socially, connecting people in communities up and down the country.
“We look forward to working with the government to implement the promised duty reforms in 2023, ensuring a fair and modernised rates system in the UK that supports lower-strength products and our country’s pubs.”
