The Government recognises the important contribution independent breweries make to pubs, local economies and consumer choice. Since our previous response, we continue to consider the evidence gathered through the beer market access review, informed by engagement with sector stakeholders and advice from competition policy experts.

Given the complexity of the market, it is important that the evidence is considered carefully before decisions are taken. The Government understands the sector’s interest in the outcome and will set out its conclusions in due course.

The Government is evaluating the impacts of the alcohol duty reforms introduced on 1 August 2023, in line with the commitment to do so three years on from their implementation. This includes an assessment of the impact of draught relief. More details on the scope, objectives and process of this evaluation can be found here: Evaluation of Alcohol Duty Reforms - GOV.UK

The Statutory review did not explicitly seek views on guest beer rights. The scope of the code, covering six pub owning businesses with 500 or more tied tenants, means that it only applies to a small portion of the businesses in the sector. These regulated businesses already voluntarily allow for guest beer to be sold by their tied tenants.

Separately, the Government conducted a broader review of the beer market in the wider hospitality sector to assess whether there are structural barriers across the sector affecting access to pubs for small breweries.

The Competition and Markets Authority (CMA) is operationally independent from Government. It decides what investigations to take forward based on its published prioritisation principles. The Government has not requested a timetable for the CMA's consideration of CAMRA's request for a market investigation. Decisions on such requests, and the timing of any response, are matters for the CMA.

The Department has conducted a review of the beer market to determine whether there are any structural barriers preventing small breweries from accessing pubs. As part of this work, Ministers and officials have engaged with a wide range of stakeholders from across the sector to hear evidence and views directly. The issues raised are complex, and it is important that all relevant evidence is considered carefully alongside advice from competition policy experts before decisions are taken on any potential next steps.

We continue to engage regularly with representatives from across the brewing and pub sectors to ensure policy decisions are informed by the latest evidence and reflect the experiences of businesses operating in the market.

I am the one who can organise something in a brewery, apparently! We hear lots of representations from hon. Members in support of small businesses, and we recognise the challenges that they face with their energy costs. Eligible small businesses are already benefiting from the VAT cut. On top of that, we will bring forward measures to deal with the third-party intermediaries who are often ripping off small businesses. As I said earlier, we are keen to go further, and I am working across both of my Departments towards that end.

Ahead of the Budget, I have been talking to many small businesses in my constituency. The Minister might be particularly interested to know that that includes 12 independent breweries, which are really struggling with their energy bills. What representations have been made to the Chancellor about the need to support them?

The Government published an updated assessment in October 2024 of the impact of introducing Extended Producer Responsibility for packaging (pEPR) on packaging producers as a whole. The assessment did not provide separate estimates for breweries, pubs or hospitality businesses, or disaggregate impacts at a local level.

The Government is aware of concerns about the classification of packaging that is disposed of through commercial waste streams, including in hospitality settings. Defra continues to work on this issue and that includes working closely with the brewing, hospitality and wider packaging sectors.

An assessment of the impacts of decisions taken by the Chancellor at the Budget is published within the relevant Tax Impact and Information Note (TIIN). The TIINs for the inflation-linked uprating to alcohol duty announced at Autumn Budget 2024 and 2025 are available here:

Alcohol Duty uprating - GOV.UK

Alcohol Duty uprating - GOV.UK

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate are limited and must be balanced against their impact on the public finances.

HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2026-27, rising to £19.5 billion in 2030-31.

An assessment of the impacts of decisions taken by the Chancellor at the Budget is published within the relevant Tax Impact and Information Note (TIIN). The TIINs for the inflation-linked uprating to alcohol duty announced at Autumn Budget 2024 and 2025 are available here:

Alcohol Duty uprating - GOV.UK

Alcohol Duty uprating - GOV.UK

The Office for Budget Responsibility will publish an updated Alcohol Duty forecast at Budget 2026.

Treasury Ministers and officials regularly engage with businesses across sectors, and the Government recognises the value pubs and breweries bring and the challenges they face across the country, including in Ashfield.

The Government has announced a 20% cut to business rates bills for pubs from April 2027. This is in addition to the 15% relief off 2025/2026 bills, with bills frozen in real terms for a further two years. When taken together, these packages are worth nearly £250 million next year and will benefit around 32,000 pubs, social clubs and live music venues.

Separately, on 24 August 2026, the Government announced a review of pub and hotel business rates valuations to build a fairer system for the future. This review calls for the views of landlords, hoteliers and business owners.

We are also supporting breweries. Draught Relief enables products served on draught below 8.5% alcohol by volume (ABV) to pay less duty. This relief benefits pubs and other venues, as well as the producers that supply eligible products. Small Producer Relief (SPR) was introduced to replace and extend the previous Small Brewers Relief. SPR provides vital support to SMEs and market entrants by allowing brewers and smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5% ABV.

Treasury Ministers and officials regularly engage with businesses across sectors, and the Government recognises the value pubs and breweries bring and the challenges they face across the country, including in Ashfield.

The Government has announced a 20% cut to business rates bills for pubs from April 2027. This is in addition to the 15% relief off 2025/2026 bills, with bills frozen in real terms for a further two years. When taken together, these packages are worth nearly £250 million next year and will benefit around 32,000 pubs, social clubs and live music venues.

Separately, on 24 August 2026, the Government announced a review of pub and hotel business rates valuations to build a fairer system for the future. This review calls for the views of landlords, hoteliers and business owners.

We are also supporting breweries. Draught Relief enables products served on draught below 8.5% alcohol by volume (ABV) to pay less duty. This relief benefits pubs and other venues, as well as the producers that supply eligible products. Small Producer Relief (SPR) was introduced to replace and extend the previous Small Brewers Relief. SPR provides vital support to SMEs and market entrants by allowing brewers and smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5% ABV.

Treasury Ministers and officials regularly engage with businesses across sectors, and the Government recognises the value pubs and breweries bring and the challenges they face across the country, including in Ashfield.

The Government has announced a 20% cut to business rates bills for pubs from April 2027. This is in addition to the 15% relief off 2025/2026 bills, with bills frozen in real terms for a further two years. When taken together, these packages are worth nearly £250 million next year and will benefit around 32,000 pubs, social clubs and live music venues.

Separately, on 24 August 2026, the Government announced a review of pub and hotel business rates valuations to build a fairer system for the future. This review calls for the views of landlords, hoteliers and business owners.

We are also supporting breweries. Draught Relief enables products served on draught below 8.5% alcohol by volume (ABV) to pay less duty. This relief benefits pubs and other venues, as well as the producers that supply eligible products. Small Producer Relief (SPR) was introduced to replace and extend the previous Small Brewers Relief. SPR provides vital support to SMEs and market entrants by allowing brewers and smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5% ABV.

The Government recognises the important contribution that pubs and small and independent breweries make to local economies and communities across the country, and remains committed to supporting a diverse and competitive beer and pub sector.

Over the last six months I have met with all interested stakeholders directly to consider the evidence received through the review of the beer market and I have discussed this evidence in detail with policy experts within my department.

However, The Campaign for Real Ale (CAMRA) recently wrote to the Competition and Markets Authority (CMA) requesting a market investigation into this area. Given the CMA's role as the UK's independent competition regulator, it is important that the CMA is given the opportunity to consider that request.

The Government recognises the important contribution that pubs and small and independent breweries make to local economies and communities across the country, and remains committed to supporting a diverse and competitive beer and pub sector.

Over the last six months I have met with all interested stakeholders directly to consider the evidence received through the review of the beer market and I have discussed this evidence in detail with policy experts within my department.

However, The Campaign for Real Ale (CAMRA) recently wrote to the Competition and Markets Authority (CMA) requesting a market investigation into this area. Given the CMA's role as the UK's independent competition regulator, it is important that the CMA is given the opportunity to consider that request.

The Government recognises the important role pubs and breweries play in supporting jobs, local economies and communities, and continues to engage with businesses across the sector to understand the pressures they face.

A Tax Information and Impact Note (TIIN) was published alongside the Bill containing the changes to employer National Insurance contributions. This sets out the impact of the policy on the Exchequer, the wider economic impacts, and the impacts on individuals, businesses and civil society organisations, as well as an overview of equality impacts. However, it does not provide an assessment of impacts on specific sectors.

We will continue to engage with businesses across the sector to understand the pressures they face, including through the Hospitality Sector Council, which brings together industry leaders and government to support the sector's long-term growth and resilience.

The Government recognises the importance of ensuring that the beer and pub sector remains diverse, competitive and rooted in local communities, supporting jobs, investment and growth across towns and villages. We also recognise the concerns raised by some brewers about market access and the challenges facing small and independent breweries.

I met with representatives from CAMRA on the 1st July to discuss the issues raised in their report: ‘Beer in the UK’. The Government values engagement with the Campaign for Real Ale (CAMRA) and other representatives of the pub and brewing sector and continues to listen to the challenges facing pubs and breweries.