Local Member of Parliament, Robert Halfon has welcomed the Government’s decision to freeze alcohol duty for a further six months, supporting Harlow pubs and businesses until Summer 2023.
The hospitality sector is vital to our great town’s social fabric, and we will always support pubs, breweries and other small businesses that create jobs and grow the economy. That is why the Government has announced a six month extension to the freeze on Alcohol Duty – meaning the duty will remain frozen until August 2023.
The current alcohol duty freeze was announced at Autumn Budget 2021, saving consumers over £3 billion over five years. It was expected to come to an end on 1 February 2023 but this action extends the relief and gives the sector more time to prepare for the new, simpler alcohol tax system due to come in next year.
The new alcohol tax system will adopt a common-sense approach, where the higher a drink’s strength the higher the duty, whilst new reliefs will be made available to help pubs and breweries thrive. New Draught Relief will be worth £100 million a year and will ensure smaller craft producers can benefit, the threshold for qualifying containers will be 20 litres.
Small Brewers Relief will be renamed Small Producer Relief, reformed and expanded, meaning that all producers that make drinks below 8.5 per cent – mostly craft brewers and cidermakers – will be able to get relief on their products.
The wine industry will also be supported as they adapt to the new system. All wine between 11.5-14.5 per cent alcohol by volume (ABV) to calculate duty as if it were 12.5 per cent ABV for 18 months from the implementation of the new system.
Commenting on the alcohol duty freeze, Mr Halfon said: “As the hospitality sector recovers from the pandemic and faces the challenges of higher energy prices over the winter period, it is right we stand by our pubs, distilleries and breweries across the whole of the UK and Harlow.
“That is why I welcome the announcement from the Government that alcohol duty will be frozen for a further six months, as part of a larger commitment to radically simplify the tax system and slash red tape.
“This action will give our wonderful Harlow pubs more time to get ready for the new alcohol tax system due to come in next year.”
Exchequer Secretary to the Treasury James Cartlidge said: “Today’s announcement reflects this government’s commitment to responsible management of the UK economy.
“The alcohol sector is vital to our great country’s social fabric, and we have listened to pubs, breweries and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system coming in, which why we have acted now and with decisiveness.”
