Last week the Government’s Brexit Pubs Guarantee came into force, cutting taxes for 38,000 pubs and bars and supporting local businesses and communities as we work to grow the economy.
As a result of these measures, the duty paid on drinks on tap in pubs will be up to 11p lower than at the supermarket. The changes are designed to help pubs compete on a level playing field with supermarkets, so they can continue to thrive at the heart of communities across the UK. The Brexit Pubs Guarantee announced in the Chancellor’s Spring Budget secures the pledge that pubs will always pay less alcohol duty than supermarkets going forwards.
It comes as other landmark changes to the alcohol duty system also came into effect last week, which see drinks taxed by strength for the first time and a new relief – named Small Producer Relief – to help small businesses and start-ups create new drinks, innovate and grow.
These changes have also automatically lowered the duty in shops and supermarkets on many of the UK’s favourites including certain bottles of pale ale, pre-mixed gin and tonic and English sparkling wine, amongst others.
The three alcohol duty changes that have taken effect are only possible thanks to the UK’s departure from the EU and the guarantees set out in the Windsor Framework. The previous duty system was complex and unfair but now that the UK is free to set excise policy to suit its needs, the Government has brought about common-sense reforms in order to support wider UK tax and public health objectives.
The alcohol duty reforms were announced at the Autumn Budget in 2021. The reforms pledged to modernise and simplify a duty system that had not been changed in 140 years, only possible as the UK has left the EU.
A key part of my job as the Forest’s local MP is to support and champion our local hospitality businesses. For example, I recently welcomed the grand opening of The Rising Sun in Woodcroft, which received support from the Government’s Community Ownership Fund.
These changes demonstrate the Conservative Government’s strong commitment to growing the economy and securing the future of local businesses.
Today we’re making new reforms to the alcohol duty system to benefit businesses & consumers. These will:
🍺 Make the duty paid on pints up to 11p cheaper in the pub
🍾 Lower prices in shops for the UK’s favourite drinks
⬆️ Provide tax relief for start-ups to help them grow— UK Prime Minister (@10DowningStreet) August 1, 2023
This article was first published in The Forester newspaper.