Alcoholic Drinks: Excise Duties

Treasury written question – answered on 25th October 2021.

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Photo of Kelly Tolhurst Kelly Tolhurst Conservative, Rochester and Strood

To ask the Chancellor of the Exchequer, what steps he is taking to support the hospitality industry and independent distilleries through the upcoming Budget and the Alcohol Duty Review; and when he plans to announce the next stage of that Review.

Photo of Helen Whately Helen Whately The Exchequer Secretary

The 2020 Budget committed the Government to undertaking a wide-ranging review of alcohol. Last Autumn the Government launched a Call for Evidence for this review. We are now in the process of analysing responses.

The Government has acted through its unprecedented coronavirus response to support the hospitality sector, including through furlough, grants and business rates relief. As announced at Budget 2021, the Government extended the temporary reduced rate of VAT (5 per cent) for the tourism and hospitality sector. Although that relief ended on 30 September 2021, on 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help businesses manage the transition back to the standard rate. The new rate will end on 31 March 2022.

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