Richard has welcomed the government’s decision to extend the alcohol duty freeze for a further six months, helping pubs across North East Bedfordshire.
The current alcohol duty freeze was announced at Autumn Budget 2021, saving consumers over £3 billion over five years. It was expected to come to an end on 1 February 2023 but this action extends the relief and gives the alcohol sector more time to prepare for the new, simpler alcohol tax system due to come in next year.
The new alcohol tax system will adopt a common-sense approach, where the higher a drink’s strength the higher the duty, whilst new reliefs will be made available to help pubs and breweries thrive.
New Draught Relief will be worth £100 million a year and will ensure smaller craft producers can benefit, the threshold for qualifying containers will be 20 litres.
Small Brewers Relief will be renamed Small Producer Relief, reformed and expanded, meaning that all producers that make drinks below 8.5 per cent – mostly craft brewers and cidermakers – will be able to get relief on their products.
The wine industry will also be supported as they adapt to the new system. All wine between 11.5-14.5 per cent alcohol by volume (ABV) to calculate duty as if it were 12.5 per cent ABV for 18 months from the implementation of the new system.
Commenting, Richard Fuller MP said:
The hospitality sector is vital to our great country’s social fabric, and we will always support pubs, breweries and other small businesses that create jobs and grow the economy.
That is why I welcome the decision to extend the freeze on Alcohol Duty until August 2023, when the government will introduce a simplified, common-sense duty system which will see duty charged based purely on a drink’s strength.
This freeze will help pubs, breweries and other businesses with the transition to our new alcohol duty system – supporting jobs, growing the economy and keeping prices lower for families.
