Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential merits of increasing draught duty relief.
This Government is proud to have been able to significantly expand the generosity of Draught Relief this parliament, in recognition of the economic and cultural importance of pubs, and the wider “on trade”.
In February 2025, the Chancellor delivered a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint and reduced overall duty receipts by £85m. Draught beer and cider now pay 13.9% less in tax than their packaged equivalents.
The Government keeps duty rates under review, and the Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the on trade sector on the effectiveness of Draught Relief in advance of the Budget.