Kate Kniveton, Member of Parliament for Burton and Uttoxeter, has welcomed the announcement by HM Treasury to extend the current freeze on UK alcohol duty rates for a further six months to 1st August 2023. The freeze is part of Government’s efforts to provide certainty and support to pubs and the hospitality sector over the winter period.
The current freeze in duty rates was expected to come to an end on 1st February 2023 but will now end when the Government’s overhaul of the alcohol tax system is implemented in August 2023. The new alcohol tax system will reform the outdated rules following the UK’s exit from the EU and mean that the system is simplified, creating better incentives for smaller breweries.
As part of the reforms, a new Draught Relief will be introduced for the benefit of smaller craft producers worth £100 million a year. This will apply to all containers over 20 litres, a threshold that Ms Kniveton campaigned successfully to be lowered to support more smaller breweries.
Commenting, Kate Kniveton MP said:
“I welcome the announcement from the Government to freeze alcohol duty rates for a further six months. Burton is the brewing capital of the world and I know this announcement will be welcomed by the brewers and publicans locally who are not immune to the global economic challenges all sectors are facing this winter.
“The Government’s wider reforms to the alcohol tax system which will be introduced next year will bring big advantages to smaller brewers and help Burton’s microbrewers grow and become more competitive.”
