The Government is continuing to monitor the economic impact of covid-19 on the brewing sector and is taking steps to support pubs and brewers in their recovery.
As announced at Autumn Budget, the duty rates on alcohol including beer will be frozen for another year. This is expected to save beer drinkers £900 million over the next five years, and has resulted in beer duty rates being at their lowest level in real terms since the 1990s.
In addition, as part of our alcohol duty review, the Government has announced a number of reforms which will further support brewers. This includes our proposal to widen the reduced rate for lower strength beers from 2.8% alcohol by volume (ABV) to extend to beers below 3.5% ABV, and to move the higher rate for beers above 7.5% ABV to start at 8.5% ABV.
The Government has also announced it will reduce the duty on draught beer by 5% from 2023. This will cut the duty on a pint of beer served in a pub by 3p.