Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Department's policy paper entitled Alcohol Duty uprating, published on 30 October 2024, if she will publish an estimate of the future administrative and operational costs to businesses associated with the withdrawal of the temporary easement on 1 February 2025.

At the recent Budget, the Chancellor confirmed that the current temporary wine easement will end as planned from 1 February 2025. By this time, the wine industry will have had over two years to adapt to the strength-based alcohol duty system. The summary of impacts from the alcohol duty reforms announced at Spring Budget 2023, including the wine easement, can be found here: Alcohol Duty Reforms - GOV.UK

The Budget also announced that alcohol duty will be uprated in line with RPI inflation on 1 February 2025, except on qualifying draught products. A Tax Information and Impact Note was published alongside this Budget announcement. This is available here: Alcohol Duty uprating - GOV.UK

HMRC plans to evaluate the impact of the new rates and structures three years after the changes took effect on 1 August 2023.  The Government welcomes evidence from industry on the impact of the changes so far.