Thursday, October 31, 2024

Rachel Reeves slashes beer duty in pubs in Budget giveaway

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Rachel Reeves has announced the Government will cut draught duty by 1.7%, which means “a penny off a pint in the pub”.

The Chancellor told the Commons: “I can confirm that alcohol duty rates on non-draught products will increase in line with RPI from February next year, but nearly two-thirds of alcoholic drinks sold in pubs are served on draught.

“So today, instead of uprating these products in line with inflation, I am cutting draught duty by 1.7%, which means a penny off a pint in the pub.”

The former Conservative Government increased Alcohol Duty by 20% on over 85% of all wines in the UK, and more than 10% to the tax made on full-strength spirits. This marked the largest hike in nearly 50 years.

Subsequently, alcohol duty raised £11.8 billion between September 2023 and August 2024 , down from £13.1billion in the same period the year before.

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