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: 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 community pubs.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government values the important contribution that pubs make to our culture and the UK economy, including fostering a sense of place and community.
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.
In addition, at Autumn Statement 2023, the government announced it will extend the Retail, Hospitality and Leisure relief scheme at 75 per cent, up to a cash cap of £110,000 per business for 2024-25. Around 230,000 retail, hospitality and leisure properties, including pubs, will be eligible for this relief, a tax cut worth nearly £2.4bn.
The Government is also funding a wide range of community assets, including pubs, through the Community Ownership Fund. To date, the Fund has allocated £71.3m to 257 projects, including many rural pubs.
Mentions:
1: McKelvie, Christina (SNP - Hamilton, Larkhall and Stonehouse) If there has been any impact on the industry at all, it has been on cider producers in Scotland, who - Speech Link
2: Sweeney, Paul (Lab - Glasgow) It was observed that there were points where the price becomes more elastic, such as with off-trade cider - Speech Link
3: McKelvie, Christina (SNP - Hamilton, Larkhall and Stonehouse) People who are involved in the cider market will tell you that their market has collapsed in Scotland—although - Speech Link
4: McKee, Ivan (SNP - Glasgow Provan) We heard in evidence from cider producers that there was an increase of 300 per cent or thereabouts in - Speech Link
Feb. 27 2024
Source Page: UK businesses welcome protection for iconic British food and drink in JapanFound: beverages will have their GIs protected in Japan: English Wine English Regional Wine Herefordshire Cider
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government makes funding available to support businesses producing alcoholic beverages.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government values the important contribution that the alcohol industry makes to our economy and society, and the new duty system, introduced on 1 August 2023, contains many benefits for alcohol producers, including two new reliefs.
The new Small Producers 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, and by 23 per cent on qualifying draught wine-based, spirits-based and other fermented products.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the potential revenue lost from illegal gambling.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. The tax gap statistics are published annually and are available at: Measuring tax gaps - Measuring tax gaps 2023 edition: tax gap estimates for 2021 to 2022 - GOV.UK (www.gov.uk)
HMRC does not separately estimate a betting and gaming duty tax gap; it forms part of the ‘other excise duties’ tax gap, namely betting and gaming, cider and perry, spirits-based ready-to-drink beverages and wine duties gaps.
Dec. 21 2023
Source Page: Review of The Spirit Drinks (Costs of Verification) Regulations 2013Found: for Irish Whiskey, Irish Cream and Irish Poteen produced in Northern Ireland, Scotch Whisky, Somerset Cider
Aug. 23 2023
Source Page: Alcohol Duty ratesFound: 1.2% 0.00 1.3% to 3.4% 9.27 3.5% to 8.4% 21.01 8.5% to 22% 28.50 Stronger than 22% 31.64 Cider
Dec. 13 2023
Source Page: Final Summary of Outcomes: Star’s compliance with the PCA recommendationsFound: These terms, which require the pub under a MRO tenancy to stock beer and cider produced by the brewer
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has received representations from (a) CAMRA and (b) organisers of beer and cider festivals on the effect of the draught relief provisions in the Finance (No. 2) Act 2023 on their ability to sell alcoholic drinks in sealed containers of less than 20 litres during such events.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
My officials and I have engaged extensively with members of the beer and cider industries, including CAMRA, throughout the policy development of the alcohol reforms. This includes discussions about Draught Relief.
The core objective of Draught Relief is to recognise the cultural importance of pubs and other on-trade venues as community hubs and to encourage responsible drinking in supervised settings.
The current policy does not prevent pubs and other on-trade venues from selling takeaway pints. Businesses have the ability to purchase full duty paid containers should they wish to decant from the container and sell beverages for their customers to consume off-site.