Sep. 13 2023
Source Page: Submit a Beer Duty returnFound: Submit a Beer Duty return
Asked by: Navendu Mishra (Labour - Stockport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 16 February 2024 to Question 14382 on Beer and Cider: Tax Allowances, whether he has made an assessment of the potential impact of the rules relating to off-site consumption of products covered by Draught Relief on the volume of beer and cider wasted at (a) beer and cider festivals and (b) community pubs.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government engaged extensively with external stakeholders as part of the development and delivery process for the new alcohol duty system, including in relation to Draught Relief.
HMRC has published guidance explaining the changes, including in relation to Draught Relief, and ran 3 webinars for businesses - a recording of the webinar is available at: HMRC email updates, videos and webinars for Alcohol Duty - GOV.UK (www.gov.uk). HMRC has also worked with trade associations to ensure they share the guidance with their members.
HMRC has also published a tax information and impact note setting out the impact of the measure, which can be found here: https://www.gov.uk/government/publications/reform-of-the-alcohol-duty-system/reform-of-alcohol-duty-rates-and-reliefs#summary-of-impacts
The Government will evaluate the impact of the new rates and structures three years after the changes took effect on 1 August 2023.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to reduce duty charged on draught beer and cider served in pubs and taprooms by 20%.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Draught Relief, introduced under this Government’s new alcohol duty system, provides a reduction in the duty on draught beer and cider by 9.2% and helps to level the playing field between pubs and supermarkets, allowing pubs and brewers to price their on-trade products more competitively. The Brexit Pubs Guarantee ensures that draught products will always be subject to lower duty than their supermarket equivalent.
The Government is unable to speculate on tax matters outside of fiscal events. As with all taxes, the Government keeps the alcohol duty system under review during its yearly Budget process.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will increase the value of draught relief to 20% for qualifying beer and cider products in the spring Budget 2024.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Draught Relief, introduced under the new alcohol duty system, provides a reduction in the duty on draught beer and cider by 9.2% and helps to level the playing field between pubs and supermarkets, allowing pubs and brewers to price their on-trade products more competitively. The Brexit Pubs Guarantee ensures that draught products will always be subject to lower duty than their supermarket equivalent.
The Government is closely monitoring the impact of the recent reforms and will evaluate the impact of the new rates and structures three years after the changes took effect on 1 August 2023. This will allow time to understand the impacts on the alcohol market, and for HMRC to gather useful and accurate data with which to evaluate the effects of the reform.
The Government is unable to speculate on tax matters outside of fiscal events. As with all taxes, the Government keeps the alcohol duty system under review during its yearly Budget process.
Asked by: Navendu Mishra (Labour - Stockport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 February to Question 14382 on Beer and Cider: Tax Allowances, what steps he has taken to raise awareness of the change in rules on takeaway draught sales for (a) beer and cider festivals and (b) community pubs.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government engaged extensively with external stakeholders as part of the development and delivery process for the new alcohol duty system, including in relation to Draught Relief.
HMRC has published guidance explaining the changes, including in relation to Draught Relief, and ran 3 webinars for businesses - a recording of the webinar is available at: HMRC email updates, videos and webinars for Alcohol Duty - GOV.UK (www.gov.uk). HMRC has also worked with trade associations to ensure they share the guidance with their members.
HMRC has also published a tax information and impact note setting out the impact of the measure, which can be found here: https://www.gov.uk/government/publications/reform-of-the-alcohol-duty-system/reform-of-alcohol-duty-rates-and-reliefs#summary-of-impacts
The Government will evaluate the impact of the new rates and structures three years after the changes took effect on 1 August 2023.
Asked by: Stephen Crabb (Conservative - Preseli Pembrokeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the level of draught relief for (a) beer and (b) cider.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Under the new alcohol duty system, Draught Relief provides a 9.2% duty reduction on draught beer and cider products below 8.5% alcohol by volume. This ensures that there will always be a lower duty rate for draught products to recognise the value of our great British pubs. This means that every pint, in every pub across the UK pays less duty than their supermarket equivalent - this is the Government's Brexit Pubs Guarantee.
The Government is closely monitoring the impact of the recent reforms, including Draught Relief, and will evaluate the impact of the new rates and structures three years after the changes took effect on 1 August 2023. This will allow time to understand the impacts on the alcohol market, and for HMRC to gather useful and accurate data with which to evaluate the effects of the reform.
As with all taxes, the Government keeps the alcohol duty system under review during its yearly Budget process.
Asked by: Neil Hudson (Conservative - Penrith and The Border)
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.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
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.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to reduce the tax on draught (a) beer and (b) cider.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
At Spring Budget 2024, the Chancellor announced that alcohol duty would be frozen until 1 February 2025 to support alcohol producers, pubs, and consumers with cost of living pressures.
This extends the six months freeze the Government announced at Autumn Statement 2023, providing businesses time to adapt to the new duty system introduced on 1 August 2023.
Written Evidence Apr. 16 2024
Inquiry: High streets in towns and small citiesFound: HSC0018 - High streets in towns and small cities British Beer and Pub Association Written Evidence
Oral Evidence Mar. 19 2024
Inquiry: High streets in towns and small citiesFound: British Beer & Pub Association, and UK Hospitality Oral Evidence