The Chancellor’s draught rate cut at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs.

Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – a 50% increase on the previous draught discount of 9.2%. This took a penny of duty off a typical strength pint.

Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – a 50% increase on the previous draught discount of 9.2%.

The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

From 2026-27, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that eligible RHL businesses benefit from much-needed certainty and support.

Eligibility for the new RHL multipliers is intended to broadly reflect the scope of the existing RHL relief scheme, and will be set out in legislation later this year.

Until these new tax rates are introduced, in 2025-26, RHL businesses will receive a 40 per cent relief on their eligible properties up to a cash cap of £110,000 per business. Under the previous Government, RHL relief was due to end entirely in April 2025. By extending the relief, the Government has saved the average pub, with a ratable value of £16,800, over £3,300.

Tax policy and legislation is not subject to the Better Regulation Framework Guidance, which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

Regarding National Insurance contributions, a Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the Exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.

According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.

The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. 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.

The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.

There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.

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.

The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.

According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.

The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. 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.

The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.

There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.

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.

The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.

According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.

The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. 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.

The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.

There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.

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.

The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.

We have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.

We have prevented retail, hospitality, and leisure (RHL) business rates relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.

From April 2026, we intend to introduce permanently lower business rates multipliers for RHL properties with rateable values below £500,000. The Treasury has, and will continue to, meet with the RHL sector to discuss these reforms.

At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and increased the relief available on draught products to 13.9%.

We have protected small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from this package.

Furthermore, the Department of Business and Trade will soon be publishing its Small Business Strategy, which will announce further measures to support small businesses in the hospitality sector and to revitalise high streets.

Through The Hospitality Support Scheme, the Government is working with Pub is the Hub and providing funds to help community pubs adapt to changing local needs, ensuring these vital social hubs continue delivering for their communities.

Additionally, we have funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date.

The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.

We have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.

We have prevented retail, hospitality, and leisure (RHL) business rates relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.

From April 2026, we intend to introduce permanently lower business rates multipliers for RHL properties with rateable values below £500,000. The Treasury has, and will continue to, meet with the RHL sector to discuss these reforms.

At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and increased the relief available on draught products to 13.9%.

We have protected small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from this package.

Furthermore, the Department of Business and Trade will soon be publishing its Small Business Strategy, which will announce further measures to support small businesses in the hospitality sector and to revitalise high streets.

Through The Hospitality Support Scheme, the Government is working with Pub is the Hub and providing funds to help community pubs adapt to changing local needs, ensuring these vital social hubs continue delivering for their communities.

Additionally, we have funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.

According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.

The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. 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.

The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.

There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.

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.

The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

At the Autumn Budget, the Chancellor cut alcohol duty on qualifying draught products, including most draught beer – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85 million a year and is equivalent to a 1p duty reduction on a typical pint. This reduction, which came into effect on 1 February 2025, increased the relief available on draught products to 13.9%.

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 meetings with external organisations on departmental business are published on a quarterly basis and are available at the link here: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

As with all taxes, the Government welcomes representations on how the alcohol duty system can be improved. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.

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 meetings with external organisations on departmental business are published on a quarterly basis and are available at the link here: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

As with all taxes, the Government welcomes representations on how the alcohol duty system can be improved. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.

At the Autumn Budget, the Chancellor cut alcohol duty on qualifying draught products, including mostly draught beer – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint. This reduction increased the relief available on draught products to 13.9% came into effect on 1 February 2025. Other alcohol duties were increased in line with inflation.

As with all taxes, the Government keeps alcohol duty under review as part of its Budget process.

Policies related to packaging alcohol taxation vary between European countries.

In October 2024, the Government published an updated assessment of the impact of introducing the pEPR scheme on packaging producers. It has worked closely with industry, including the brewing sector, throughout the development of the scheme.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services.

As with all taxes, the Government keeps alcohol duty rates under review during its Budget process.

Pubs, brewers and distillers make a significant contribution to our economy, which is recognised in the tax system. According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were a) 14,000 people employed in distilling, rectifying and blending of spirits, b) 21,000 people employed in the manufacture of beer and c) 474,000 people employed in public houses and bars across Great Britain.

At Autumn Budget, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint. This reduction increased the relief available on draught products to 13.9%.

The government will also consult on ways to encourage small brewers to retain and expand their access to UK pubs, maximising drinkers’ choice and local economies, including through provisions to enable more ‘guest beers’. Generosity of the discount available for small producers has also been increased.

Regarding Business Rates, the Chancellor confirmed her intention to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, including pubs, from 2026-27. In the interim, the Government extended the current RHL relief for one year at 40%, up to a cash cap of £110,000 per business and freeze the small business multiplier for 2025-26.

Pubs, brewers and distillers make a significant contribution to our economy, which is recognised in the tax system. According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were a) 14,000 people employed in distilling, rectifying and blending of spirits, b) 21,000 people employed in the manufacture of beer and c) 474,000 people employed in public houses and bars across Great Britain.

At Autumn Budget, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint. This reduction increased the relief available on draught products to 13.9%.

The government will also consult on ways to encourage small brewers to retain and expand their access to UK pubs, maximising drinkers’ choice and local economies, including through provisions to enable more ‘guest beers’. Generosity of the discount available for small producers has also been increased.

Regarding Business Rates, the Chancellor confirmed her intention to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, including pubs, from 2026-27. In the interim, the Government extended the current RHL relief for one year at 40%, up to a cash cap of £110,000 per business and freeze the small business multiplier for 2025-26.

As set out at Autumn Budget 2024, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on all properties with a rateable value (RV) of £500,000 and above.

The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.

Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

As set out at Autumn Budget 2024, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27, which will benefit almost all pubs in England. We intend to fund this by introducing a higher multiplier on the most valuable properties. The multiplier rates will be confirmed at Autumn Budget 2025.

During the interim period, for 2025-26, RHL businesses will receive a 40 per cent relief on their business rates up to a cash cap of £110,000 per business, and the tax multiplier applied to small properties will be frozen. Under the previous government, RHL relief was due to end entirely in April 2025, and so by extending it, the Government has saved the average pub, with a ratable value of £16,800, over £3,300.

In recognition of the economic and social importance of pubs, and the wider “on trade”, the Government is cutting duty on qualifying draught products – approximately two-thirds of the alcoholic drinks sold in pubs. This reduces businesses’ total duty bill by up to £100 million a year and increases the duty differential between products from 9.2 per cent to 13.9 per cent.

The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.

Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions.  Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

Turning to employment costs, to repair the public finances and help raise the revenue required to increase funding for public services, the Government has taken the difficult decision to increase employer National Insurance.

The Government recognises the need to protect the smallest employers which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year.

A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November 2024.

The National Minimum Wage and National Living Wage rates are set on the independent and expert advice of the Low Pay Commission (LPC).

By seeking expert and independent advice from the LPC when setting the minimum wage rates, the Government is able to ensure that the right balance is struck between the needs of workers, affordability for businesses and the impact on the economy.

A Tax Information and Impact Note was published alongside the changes to alcohol duty announced at Autumn Budget. This is available here: Alcohol Duty uprating - GOV.UK

As with all taxes, the Government keeps alcohol duty rates under review during its Budget process.

To deliver our manifesto pledge, from 2026-27, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including pubs and breweries, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support.

This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties on 2026-27 - those with Rateable Values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.

The Government also published the ‘Transforming Business Rates’ Discussion Paper at Autumn Budget setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Further information regarding the Discussion Paper can be found at: https://www.gov.uk/government/publications/transforming-business-rates.

There is significant variation in alcohol taxation policy amongst European countries, with some countries having lower alcohol duty rates and some having higher rates.