Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help ensure that the beer duty structure supports (a) growth and (b) job creation in the brewing industry.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
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, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
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. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with HMRC on the potential impact of (a) the administration of and (b) compliance with the beer duty system on small producers.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of changes to beer duty on the financial sustainability of (a) small and (b) independent breweries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of beer duty reforms on the growth of (a) microbreweries and (b) regional brewing clusters.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to monitor whether reductions in beer duty are being passed on to (a) consumers and (b) publicans.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV.
The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
At Autumn Budget 2024, the Chancellor also 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, and means draught beer now pays 13.9% less in duty than its packaged equivalents.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of reforms to beer duty on (a) consumer prices and (b) inflation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV.
The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
At Autumn Budget 2024, the Chancellor also 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, and means draught beer now pays 13.9% less in duty than its packaged equivalents.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential fiscal impact of draught beer relief since its introduction.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV.
The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
At Autumn Budget 2024, the Chancellor also 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, and means draught beer now pays 13.9% less in duty than its packaged equivalents.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of introducing a guest beer agreement scheme for pubs as part of (a) the Pubs Code and Pubs Code Adjudicator: statutory review and post-implementation review, 2022 to 2025 and (b) the review on retaining and expanding access to pubs for small brewers, as referenced in paragraph 2.44 of the Autumn Budget 2024, published on 30 October 2024, HC295.
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're currently assessing the beer market to determine whether there are any structural barriers preventing small brewers from accessing pubs.
This review specifically references market access for small brewers, and will cover all subcategories of the pub sector, including leased and tenanted pubs. It will not, however, consider the merits of different pub models. We’re considering the review’s findings and will announce in due course any measures that may need to be taken.
The Pubs Code (the Code) applies to large pub-owning businesses with 500 or more tied pubs in England and Wales, covering around 8,000 pubs. Separate to the beer market review, the Government is currently conducting a statutory review into the operation of the Pubs Code and the performance of the Pubs Code Adjudicator. Alongside this statutory review, the Government is also conducting a Post Implementation Review (PIR) which will consider the Pub Code’s impact since it was introduced in 2016
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, with reference to paragraph 2.44 of the Autumn Budget 2024, published on 30 October 2024, HC295, when he plans to publish a response to the consultation on retaining and expanding access to pubs for small brewers.
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're currently assessing the beer market to determine whether there are any structural barriers preventing small brewers from accessing pubs.
This review specifically references market access for small brewers, and will cover all subcategories of the pub sector, including leased and tenanted pubs. It will not, however, consider the merits of different pub models. We’re considering the review’s findings and will announce in due course any measures that may need to be taken.
The Pubs Code (the Code) applies to large pub-owning businesses with 500 or more tied pubs in England and Wales, covering around 8,000 pubs. Separate to the beer market review, the Government is currently conducting a statutory review into the operation of the Pubs Code and the performance of the Pubs Code Adjudicator. Alongside this statutory review, the Government is also conducting a Post Implementation Review (PIR) which will consider the Pub Code’s impact since it was introduced in 2016
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 28 April 2025 to Question 45426 on Beer: Small business, when he plans to announce further steps on encouraging small brewers to (a) retain and (b) expand their access to 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're currently assessing the beer market to determine whether there are any structural barriers preventing small brewers from accessing pubs.
This review specifically references market access for small brewers, and will cover all subcategories of the pub sector, including leased and tenanted pubs. It will not, however, consider the merits of different pub models. We’re considering the review’s findings and will announce in due course any measures that may need to be taken.
The Pubs Code (the Code) applies to large pub-owning businesses with 500 or more tied pubs in England and Wales, covering around 8,000 pubs. Separate to the beer market review, the Government is currently conducting a statutory review into the operation of the Pubs Code and the performance of the Pubs Code Adjudicator. Alongside this statutory review, the Government is also conducting a Post Implementation Review (PIR) which will consider the Pub Code’s impact since it was introduced in 2016