Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what comparative assessment she has made of beer duty in (a) the UK and (b) other European countries.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.

According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.

The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint.

The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.

There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.

Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.