Measure
Alcohol duty rates on draught products below 8.5% alcohol by volume (ABV) will be cut by 1.7% in cash terms, so that an average ABV strength pint will pay 1p less in duty.
Discounts provided to small producers for non-draught products will be increased and the cash discount provided to small producers for draught products will be maintained.
Alcohol duty rates on non-draught products will increase in line with RPI inflation.
Individuals and businesses involved in the manufacture, distribution, holding, sale, import and consumption of relevant alcoholic products.
These measures will take effect from 1 February 2025.
Alcohol duty rates have been frozen since August 2023, as announced at the 2023 Spring Budget. The change in duty rates was anticipated following planned expiry of the measure in February 2025.
The reduction to the duty rate on draught products is nominal. However, it is estimated by the government that this measure represents a 5.1% reduction when compared to the baseline expectation that rates would be increased in line with RPI.
The provision of support to the hospitality sector and small producers of non-draught products are cited as the key objectives of these measures.