Six month extension to alcohol duty freeze announced

Six month extension to alcohol duty freeze announced

The freeze to UK alcohol duty rates has been extended by six months to 1 August 2023, the UK Government announced yesterday.

In a statement to the House of Commons, Exchequer Secretary to the Treasury James Cartlidge laid out a plan designed to provide certainty and reassure pubs, distilleries, and breweries as they face a challenging period ahead.

While new duty rates usually come in on the 1 February each year, Mr Cartlidge set out that this year the duty rates decision will be held until Chancellor Jeremy Hunt delivers his Spring Budget on the 15 March 2023.



Further, the minister made clear that if any changes to duty are announced then, they will not take effect until 1 August 2023. This is to align with the date historic reforms for the alcohol duty system come in, and amounts to an effective six-month extension to the current duty freeze.

As part of the government’s commitment to responsible management of the UK economy, these changes will provide pubs, breweries, distilleries and other alcohol-related businesses with increased certainty to plan and make investment decisions more effectively.

James Cartlidge said: “Today’s announcement reflects this government’s commitment to responsible management of the UK economy and supporting hospitality through a challenging winter.

“The alcohol sector is vital to our country’s social fabric and supports thousands of jobs - we have listened to pubs, breweries and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system taking effect from August.

“That’s why we have acted now to give maximum certainty to industry and confirmed there will be just one set of industry-wide changes next summer.”

Share icon
Share this article: