The price of your pint will drop by 1p after draft tax cut | Politics News

Rachel Reeves He announced a reduction in military duty as part of his fall budget; thus saving drinkers a penny per pint at the bar.

Alcohol duty rates on off-draft products will rise in line with the RPI next year, the Chancellor said, as part of Labor’s efforts to plug what he claims is a £22bn ‘black hole’ in the public finances.

But good news for beer lovers; The price of a pint would drop by a penny under Labour’s plan.

But the leading names in the industry drinks The industry warned the move would further restrict sales and result in more pubs closing.

Alcohol duty was frozen for almost three years from autumn 2020 until August 2023, during which time the UK saw an increase in taxable income.

However, prices increased by 10% after then-Chancellor Jeremy Hunt imposed a tax on alcohol in line with inflation in 2023. It also changed the way duty was calculated for wine, resulting in a 20% increase in price.

From September 2023 to August 2024, alcohol duty fell to £11.8bn, down from £13.1bn in the same period the previous year.

The biggest decline was in spirits, which saw revenue fall by £750 million, followed by beer, which saw a £320 million drop in profits.

Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said: ‘We know from experience that beer duty increases rarely raise expected revenues, especially at a time when many consumers are facing a cost of living crisis and are increasingly price sensitive.

‘It is imperative that the government realizes that any increase in beer duty will not only turn away customers but could have a devastating knock-on effect.

‘Any reduction in demand could reduce other taxes and employment opportunities. Only when they reduce business costs can pubs continue to be a vital asset to both the economy and communities.’

The drinks firm behind Magners and Tennent’s said it was seeing ‘some consumer caution’ ahead of today’s budget.

It comes after C&C Group revealed its sales had fallen in the last half-year as bad summer weather hit demand for cider.

As a result, company shares fell Tuesday morning.

The company said: ‘Trading conditions remain challenging and sentiment around the UK autumn budget has led to some consumer caution; but on a positive note, we have well-executed plans for the Christmas and New Year period and are also encouraging business momentum.’

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