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Alcohol Duty frozen and tax relief extended for pubs and clubs

Jake Clothier by Jake Clothier
Saturday, February 3, 2024 7:02 am
in Business, Featured, Reading
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Pubs and hospitality across the UK are set to see alcohol duties frozen until August following an announcement by the Treasury. Picture: Drew Beamer via Unsplash

Pubs and hospitality across the UK are set to see alcohol duties frozen until August following an announcement by the Treasury. Picture: Drew Beamer via Unsplash

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VENUES in Reading are among those who will benefit from reductions on alcohol taxation, the government has announced.

Pubs and hospitality across the UK are set to see alcohol duties frozen until August following the announcement by the Treasury.

While inflation continues to rise, the amount of tax paid by licensed venues will remain at its current rate until the summer.

The government says that this represents a saving of 3p per pint of beer or cider compared to store-bought drinks, a saving of 4p for a glass of whisky, and as much as 18p for a bottle of wine.

It is part of a multi-billion pound support package for the industry as laid out last autumn, and follows the largest set of reforms on relevant taxes in more than a century.

Changes to duties made last August saw a reduction of around 11p per pint of beer compared to supermarkets.

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Now the government is seeking to retain these savings through the freezing of further duty rises in line with inflation.

Around 230,000 retail, hospitality, and leisure businesses around the country are also set to see relief on business rates extended for a fifth year through 2025.

This constitutes a reduction of 75% up to a cap of £110,000 on certain bills, and a tax cut of nearly £2.4 billion.

The small business multiplier for those rates has also been frozen

Exchequer Secretary to the Treasury, Gareth Davies, said:

“The great British pub remains a critical part of communities across the country, that’s why we’re helping to keep costs low by freezing alcohol duty, reducing business rates, and supporting on energy costs.

“Our decisive action has also helped to more than halve inflation last year, protecting pubs and other businesses from the higher costs they would have otherwise faced.

“And we need to stick to our plan, so we can deliver the long-term change our country needs to deliver a brighter future for Britain, and improve economic security and opportunity for everyone.”

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