Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of the potential impact of alcohol duty policy on on-trade venues such as pubs, with off-trade alcohol sales in supermarkets.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The importance of the 'on-trade' is recognised in the alcohol duty system via Draught Relief, which ensures eligible products served on draught pay less duty than their packaged equivalents. The Chancellor significantly increased the generosity of this relief at Autumn Budget 2024, taking a penny of duty off a typical strength pint and reducing overall duty receipts by £85m. Draught beer and cider now pay 13.9% less in tax than their packaged equivalents – a 50% increase on the draught discount under the previous government (9.2%).
At Autumn Budget 2025, the Chancellor confirmed that alcohol duty would be uprated on 1 February 2026 to maintain its real-terms value. The government does not expect this to have any significant impact on competition between the on- and off-trades.
An assessment of the impacts of the inflation-linked uprating at the most recent Budget is published within the Tax Impact and Information Note (TIIN) here: https://www.gov.uk/government/publications/alcohol-duty-rates-change/alcohol-duty-uprating#summary-of-impacts.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether he has had discussions with the Welsh Government on the potential merits of introducing a Guest Beer agreement in Wales.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
My department works closely with hospitality businesses to assess impact of rising operating costs across energy, staffing, compliance and taxation. Additionally, the Hospitality Sector Council provides a formal forum to co-create solutions to pressures facing the industry.
The Government recognises that independent breweries are essential to the diversity and character of our pubs. We have conducted a review of the beer market to determine whether there are any structural barriers preventing small breweries, the findings from which are currently being reviewed.
We maintain regular engagement with trade bodies such as the Society of Independent Brewers, as well as colleagues across government, to ensure that policy decisions are informed by the latest evidence and genuinely support the sector’s long‑term stability.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps he is taking to support small independent breweries from increased operating costs in Wales.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
My department works closely with hospitality businesses to assess impact of rising operating costs across energy, staffing, compliance and taxation. Additionally, the Hospitality Sector Council provides a formal forum to co-create solutions to pressures facing the industry.
The Government recognises that independent breweries are essential to the diversity and character of our pubs. We have conducted a review of the beer market to determine whether there are any structural barriers preventing small breweries, the findings from which are currently being reviewed.
We maintain regular engagement with trade bodies such as the Society of Independent Brewers, as well as colleagues across government, to ensure that policy decisions are informed by the latest evidence and genuinely support the sector’s long‑term stability.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential merits of increasing draught duty relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government is proud to have been able to significantly expand the generosity of Draught Relief this parliament, in recognition of the economic and cultural importance of pubs, and the wider “on trade”.
In February 2025, the Chancellor delivered a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint and reduced overall duty receipts by £85m. Draught beer and cider now pay 13.9% less in tax than their packaged equivalents.
The Government keeps duty rates under review, and the Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the on trade sector on the effectiveness of Draught Relief in advance of the Budget.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will meet with the Valuation Office Agency to discuss the potentail impact of changes to business rates relief on pubs and breweries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget and then bills will be frozen in real terms for a further two years.
Three-quarters of pubs will see bills flat or falling in April. The new relief is worth £1,650 for the average pub next year. As a sector pubs will pay 8% less in business rates in 2029 than they do right now.
The Government will also launch a review which will explore how pubs are valued for business rates.
Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps he is taking to support pubs with operating costs in Eastleigh constituency.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
My department works closely with hospitality businesses to assess impact of rising operating costs across energy, staffing, compliance and taxation.
This includes regular engagement with the sector, including through the Hospitality Sector Council which provides a formal forum to co-create solutions to pressures facing the industry.
We also maintain regular engagement with trade bodies such as UKHospitality and the British Beer and Pub Association, as well as colleagues across government, to ensure that policy decisions are informed by the latest evidence and genuinely support the sector’s long-term stability.
Asked by: Lewis Cocking (Conservative - Broxbourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps he is taking to regulate pub-owning companies and breweries with fewer than 500 tied tenants.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government currently has no plans to consider regulating pub owning companies with less than 500 tied tenants, or to regulate breweries. Pub owning businesses that don’t meet the qualifying threshold for the Pubs Code can, however, join a voluntary scheme administered by the Pub Governing Body. This scheme, also known as the Voluntary Pubs Code, provides signatories with a dispute resolution service and fair methods of determining rent by an independent expert.
Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what progress his Department has made on assessing the beer market to determine potential structural barriers preventing small brewers from accessing pubs.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government recognises that independent breweries are essential to the diversity and character of our pubs. We have conducted a review of the beer market to determine whether there are any structural barriers preventing small breweries, the findings from which are currently being considered by ministers.
We’ve introduced a Hospitality Support Scheme to co-fund projects aligned with Department for Business & Trade and Hospitality Sector Council priorities, such as supporting initiatives like investing £440,000 to help rural pubs diversify as community hubs, delivered with Pub is The Hub to unlock over 40 stalled projects.
We also maintain regular engagement with trade bodies such as Society of Independent Brewers, as well as colleagues across government, to ensure that policy decisions are informed by the latest evidence and genuinely support the sector’s long-term stability.
Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to help promote the growth of independent brewers in Eastleigh constituency.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government recognises that independent breweries are essential to the diversity and character of our pubs. We have conducted a review of the beer market to determine whether there are any structural barriers preventing small breweries, the findings from which are currently being considered by ministers.
We’ve introduced a Hospitality Support Scheme to co-fund projects aligned with Department for Business & Trade and Hospitality Sector Council priorities, such as supporting initiatives like investing £440,000 to help rural pubs diversify as community hubs, delivered with Pub is The Hub to unlock over 40 stalled projects.
We also maintain regular engagement with trade bodies such as Society of Independent Brewers, as well as colleagues across government, to ensure that policy decisions are informed by the latest evidence and genuinely support the sector’s long-term stability.
Asked by: Tom Morrison (Liberal Democrat - Cheadle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of support for pubs and breweries in light of the 40% business rates relief reducing in the same period as the VOA rate revaluation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the hon. Members to the answer given to UIN 101363.