Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the HM Revenue and Customs' Policy paper entitled Alcohol Duty uprating, published on 30 October 2024, if she will make an assessment of the potential impact of the 3.4% increase in alcohol duties on the pub sector.

At Autumn Budget the Chancellor announced that she would uprate alcohol duty in line with RPI inflation on 1 February 2025. This decision weighed the impacts on businesses, cost-of-living pressures on people who drink moderately and responsibly, and the public health case for higher duties to tackle increasing alcohol-related deaths, as well as economic inactivity.

However, in recognition of the economic and cultural importance of pubs, and the wider “on trade”, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is reducing alcohol producers’ duty bills by over £85m a year and has cut 1p off the duty on an average strength pint.

A Tax Information and Impact Note was published alongside this Budget announcement. This includes an assessment of the impact on businesses, including alcohol retailers. This is available here: Alcohol Duty uprating - GOV.UK