Six month alcohol duty freeze takes effect

Pub and hospitality venues will benefit from a six month freeze to alcohol duty until 1st August 2024.

The duty freeze takes effect from 1st February 2024, and follows last year’s reform of alcohol duty to ensure duty paid reflects the alcohol content of drinks. Reforms also cut duty on pints in pubs, and come alongside £4.3 billion in business rates relief announced in 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.

The freeze in alcohol duty has been welcomed by UK drinks manufacturers.

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.”