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.

The Government recognises the pressures facing pubs and the important role they play in supporting jobs, local economies and communities across the UK.

The Department has not made a specific assessment of the impact of the Autumn Budget 2025 on pub closures, including in Essex, nor has it estimated the number of pubs expected to close over the next 12 months. The Department has also not made a specific assessment of the impact of the Autumn Budget 2025 on employment in the pub sector.

However, we continue to engage closely with the sector through the Hospitality Sector Council and regular engagement with businesses and trade associations. The Government has implemented a package of support for hospitality businesses, including permanently lower business rates for eligible retail, hospitality and leisure properties, a £4.3 billion package over three years to support businesses facing increases following revaluation, 15% business rates relief for eligible pubs, clubs and live music venues in 2026/27, a further 20% discount from April 2027 for pubs, clubs and live music venues, and an increase in the Employment Allowance from £5,000 to £10,500.

We have also increased the Hospitality Support Fund to £10 million over three years to strengthen long-term business viability and resilience, while supporting recruitment, skills and employment opportunities across the sector.

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.

The Government has conducted a review of the beer market to determine whether there are any structural barriers preventing small breweries from accessing pubs. I have met with all parties involved in the review to hear their evidence directly and are carefully considering the evidence submitted alongside input from competition policy experts.

Recently CAMRA has written to the Competition and Markets Authority requesting a market investigation into this area. Given the CMA's role as the UK's independent competition regulator, it is important that it is allowed the opportunity to consider that request and determine whether any action is appropriate. Therefore, the Government will not comment further on specific policy options or market interventions at this stage. The outcome of the review will be announced in due course.

The Chancellor makes decisions on tax policy at fiscal events.

The Government has been reviewing beer market access to consider whether there are any structural barriers preventing small breweries from accessing pubs. As part of this work, Ministers have met with stakeholders from across the sector to consider the evidence submitted. The issues raised are complex, and the Government is carefully assessing all relevant evidence, alongside advice from competition policy experts, before determining next steps.

The Government recognises the sector's interest in the outcome of this review. While I am unable to provide a publication date at this stage, the Government will announce its conclusions and any next steps in due course.

The Government has been reviewing beer market access to consider whether there are any structural barriers preventing small breweries from accessing pubs. As part of this work, Ministers have met with stakeholders from across the sector to consider the evidence submitted. The issues raised are complex, and the Government is carefully assessing all relevant evidence, alongside advice from competition policy experts, before determining next steps.

The Government recognises the sector's interest in the outcome of this review. While I am unable to provide a publication date at this stage, the Government will announce its conclusions and any next steps in due course.

The Department has considered the design of similar schemes in European countries as pEPR has been developed in the UK. However, direct comparisons of fee levels can be misleading because schemes differ in scope, in how drinks containers are treated, and how waste management costs are reflected.

In the UK, fees are calculated to reflect the real costs faced by local authorities. The methodology uses weight and estimated packaging volume, alongside other costs associated with collection, treatment and disposal.

PackUK plan to launch a Call for Evidence this year to inform future approaches to fee modulation.