On 19 December 2022, the Government extended the alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses.

Alcohol duty reform will commence on 1 August and for the first time our system of alcohol taxation will include a new Draught Relief, enabling differential duty between the On and Off trade. We had previously stated that Draught Relief would be 5% from August 1st but at Spring Budget 2023, the Chancellor announced that this relief would be raised to 9.2% meaning that the duty on the average pint of draught beer will continue to be frozen from 1 August 2023. Differential duty was not possible when we were members of the EU and in the Budget the Chancellor also announced his Brexit Pub Guarantee – confirming that from August 1st draught duty will always be lower compared to the non-draught equivalent, supporting pubs and the wider hospitality sector.

The Government is unable to speculate on the content of the Spring Budget, which takes place on 15 March.

As announced on 19 December, any changes to alcohol duty announced at Spring Budget 2023 will not take effect until 1 August 2023. This is to align with the date historic reforms for the alcohol duty system come in and amounts to an effective six month extension to the current duty freeze.

The alcohol duty reforms will include a new Draught Relief which will cut the level of duty on draught products sold in the on trade (i.e., pubs, social clubs), and a new Small Producer Relief will for the first time give craft cidermakers reduced rates as they grow their business. This will replace the existing Small Brewers Relief scheme, which has been reformed to remove cliff-edges and give craft brewers relief on their lower ABV beers too.  The final design of the reforms will be published at Spring Budget.

On 19 December, the Government announced a six-month extension of the current alcohol duty freeze to 1 August 2023. Beer duty is now at its lowest level in real terms since the 1990s.

Through the alcohol duty reforms, which will be introduced on 1 August this year, pubs and breweries will benefit from a new Draught Relief, providing a duty discount for draught products under 8.5% ABV sold in pubs. Small to medium sized producers will also benefit from an improved Small Producer Relief, building on the existing Small Brewers Relief which the sector has benefitted from for over 20 years.

Businesses in the retail, hospitality and leisure sectors will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75% off their business rates bill, up to a cap of £110,000 per business.

Through the new Energy Bills Discount Scheme, all eligible businesses will receive a discount on high energy bills until 31 March 2024. The Government provided an unprecedented package of support through this winter, and we have been clear that such levels of support were time-limited and intended as a bridge to allow businesses to adapt.

On 19 December, I announced an extension to the current alcohol duty freeze to 1 August 2023, to align any uprating decision with the implementation of the alcohol duty reforms and provide certainty to businesses. The Chancellor will confirm the alcohol duty rates from 1 August 2023 at Spring Budget.

Businesses in the retail, hospitality and leisure sectors will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75% off their business rates bill, up to a cap of £110,000 per business.

Through the new Energy Bills Discount Scheme, all eligible businesses will receive a discount on high energy bills until 31 March 2024. The Government provided an unprecedented package of support through this winter, and we have been clear that such levels of support were time-limited and intended as a bridge to allow businesses to adapt.

The new Energy Bills Discount Scheme will provide all eligible businesses and other non-domestic energy users across the UK with a discount on high energy bills until 31 March 2024, following the end of the current Energy Bill Relief Scheme. It will also provide businesses in sectors with particularly high levels of energy use and trade intensity with a higher level of support.

We have taken a consistent approach to identifying the most energy and trade intensive sectors, with all sectors that meet agreed thresholds for energy and trade intensity eligible for Energy and Trade Intensive Industries (ETII) support. These thresholds have been set at sectors falling above the 80th percentile for energy intensity and 60th percentile for trade intensity, plus any sectors eligible for the existing energy compensation and exemption schemes.

All other eligible businesses will automatically receive a unit discount on their bills of up to £19.61/MW for electricity, and £6.97/MW for gas.

Further details on the scheme, including information on eligibility and discount levels, can be found here: https://www.gov.uk/guidance/energy-bills-discount-scheme.

The Government keeps the duty rates under review during its yearly budget process and aims to balance the impact on businesses with its public health objectives.

The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties will be considered in due course.

The next steps of the Alcohol Duty Review announced in the Growth Plan will continue as planned. This includes the introduction of the new lower duty rate for draught beer and cider due to be implemented from 1 August 2023.

The Government keeps duty rates under review during its yearly budget process and aims to balance the impact on businesses with its public health objectives.

The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties will be considered in due course.

At Autumn Statement 2022, the government announced it would extend and increase the Retail, Hospitality and Leisure relief from 50 per cent to 75 per cent, up to a cash cap of £110,000 per business in 2023-24. This is a tax cut worth over £2 billion which is expected to benefit around 12,000 pubs.