Pubs welcome the extension
(Picture: PA Wire)A freeze on alcohol duty rates in the UK has been extended a further six months to August 1 next year, the Treasury Minister announced on Monday.
James Cartlidge told the House of Commons the extension will give “maximum certainty” to the industry and give businesses “time to prepare”.
Duty rates typically come in each year on February 1, but the Chancellor will instead make his decision on future duty rates at the spring budget next year.
“To further support the industry, we are going further by confirming that if changes to duty are announced then they will not take effect until August 1, 2023,” Mr Cartlidge said.
He added: “By saying to the industry that they will face just one single, industry-wide change next summer, rather than two or more over the course of the year, we are giving maximum certainty to industry.
“Hospitality is a major part of the economy, and while these remain challenging times, we are doing everything we can to support individual hospitality businesses of every size so that they can have a prosperous new year.”
“The alcohol duty reforms will help create a simpler, fairer and healthier duty system.”
Mr Cartlidge claimed the extension of freeze is “good news for every single sector”.
He added: “This is the biggest reform to alcohol duty for 140 years, it is a very significant reform, getting the balance between competitive rates of duty and the consideration of public health which is incredibly important.”
The British Beer and Pub Association welcomed the move and said the industry has “face pressures and challenges like never before”.
“This freeze will allow £180 million to be reinvested into our sector at a critical moment and inject a much-needed flurry of festive cheer for pubs and breweries.”
But Labour has said the extension is “laughable”.
Shadow Treasury minister Abena Oppong-Asare told the Commons: “We should call it what it is: it is a U-turn. The previous chancellor announced a freeze, the current Chancellor scrapped it, and now it’s back on. How did we get here?”
She added: “So, we see again the Government has no long-term plan for the British economy. They cannot provide the certainty businesses and their hard-working employees need to plan for the tough winter ahead.”
Ms Oppong-Asare said her party wants to see the alcohol duty system “made simpler and more consistent”, adding: “We recognise that there is a balance to be struck between supporting businesses and consumers protecting public health, and maintain a source of revenue for the Exchequer.”
Lib Dem Wendy Chamberlain (North East Fife) warned “distilling is an energy-intensive business”.
Treasury minister James Cartlidge replied: “We’re aware of the importance of energy costs … we will report in the New Year, it has taken slightly longer than expected, these are complex matters.”
He added: “Six months of support since October worth £18.1 billion for businesses including pubs, including distillers, including breweries, with their energy bills.
“It is huge, but of course I know people want to know what happens next and we will be coming forward in the New Year with the results of our review.”
