Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what fiscal steps his Department is taking to help support the brewery industry.

The Government values the important contribution that the brewery industry makes to our economy and society. The new duty system, introduced on 1 August 2023, contains many benefits for brewers, including two new reliefs.

The new Small Producer Relief means that small producers now see reduced duty rates on all products below 8.5 per cent alcohol by volume (ABV) up to a production threshold.

The new Draught Relief means that all alcoholic products under 8.5 per cent ABV which are sold in containers of 20 litres or more and are sold to connect to a dispense system qualify for reduced duty rates. This relief provides a reduction in the duty on draught beer and cider products by 9.2 per cent.

As with all tax policy, the Government keeps the alcohol duty system under review as part of the annual Budget process.