During Today’s Autumn Budget, The Chancellor Rachel Reeves MP announced that Alcohol duty rates will increase in line with inflation from February next year, but duty on alcoholic drinks served on draft in hospitality will be cut by 1.7%, “a penny off the pint in the pub”.
“To recognise the economic and cultural importance of British pubs, and commitment to supporting smaller brewers, the government is cutting alcohol duty on draught products from February next year, reducing it by 1 penny per average strength pint. Alcohol duty on non-draught products will increase in line with Retail Price Index (RPI) inflation from the same date.”
Read the full Budget here: Autumn Budget 2024 – HC 295
Dr Peter Rice, Chair of SHAAP said:
“The increase alcohol duty announced in today’s budget is good news for health and good news for raising much-needed revenues for public services. We also welcome action to narrow the price gap between pubs and supermarkets.
“In 2022, there were 10,048 alcohol-related deaths in the UK, the highest number on record, so swift action to address this was very much needed. Increasing alcohol duty will save lives and go some way to reducing the burden on our overstretched health services.
“It will also contribute vital funds to the public purse which can then help to fund alcohol treatment services.
“However, the alcohol industry has been given four months’ notice of duty changes. In the past they have used this to release excess product onto the market at the lower duty. We call on the industry to act responsibly and not undermine the Chancellor’s intention to raise much needed revenue.
“This increase merely maintains the real-terms value of alcohol duty, but the UK Government can go further. We would like to see the reinstatement of the duty escalator first introduced by former Labour Chancellor Alistair Darling which saw duty automatically uprated by 2% above inflation each year. When this was in operation, alcohol-related deaths began to fall and when it was scrapped by George Osborne, deaths started to increase again. Reintroducing this policy would ensure the public health and economic benefits of alcohol duty are maintained.”