Chancellor Rachel Reeves claims that the move will “cut a penny off a pint” at the pub.
The Government will reduce draught duty by 1.7%, or “a penny off a pint in the pub,” according to Rachel Reeves’ announcement.
The Chancellor informed the House of Commons: Despite the fact that nearly two-thirds of alcoholic beverages sold in pubs are served on draught, I am able to confirm that alcohol duty rates on non-draught products will increase in line with RPI beginning in February of next year.
“So today, instead of increasing these products in line with inflation, I am reducing draught duty by 1.7 percent, which equates to a penny off a pint in the pub,” the president stated.
Alcohol Duty was increased by 20% on over 85% of all UK wines and by more than 10% on full-strength spirits under the previous Conservative government. This was the most significant increase in nearly 50 years.
As a result, between September 2023 and August 2024, alcohol duty brought in £11.8 billion, down from £13.1 billion the year before.
