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Cider: South Somerset

Answer

The cider industry makes a vital contribution to our economy and society, which is recognised in the tax system.

The current duty system supports the cider industry through Draught Relief (DR), which ensures products served on draught pay less duty, and Small Producer Relief (SPR), which permits smaller producers to pay reduced duty rates.

Eligible producers making cider products below 8.5 per cent alcohol by volume can claim both DR and SPR.

At Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This reduces alcohol producers’ duty bills by over £85m a year and has cut 1p off the duty on an average strength pint.

The Chancellor also increased the generosity of the discount available for small cider-makers, by increasing the relative value of the SPR discount, compared to the main duty rates, for both draught and non-draught products. To illustrate, a cider-maker producing 10,000 litres of pure alcohol a year received a 52% discount on the main rate before the Budget, and receives a 53% discount now.

Secondary information

Type

Written question

Reference

84434

Session

2024-26

Subjects

Cider South Somerset

Link

View this Written question on www.parliament.uk