Tax cut for local pubs with Brexit Pubs Guarantee

Heywood and Middleton MP Chris Clarkson and Phoenix Brewery

The tax paid on pints and other drinks on tap in pubs around the Rochdale borough will now be up to 11p cheaper than the tax paid on supermarket equivalents as of yesterday (Tuesday 1 August).

Under the Brexit Pubs Guarantee brought into effect on 1 August 2023, pubs will now always pay less alcohol duty than supermarkets to prevent them being undercut. The government has pledged that the duty pubs and bars pay on these drinks will always be less than the duty retailers pay.

The Brexit Pubs Guarantee comes as other landmark changes to the alcohol duty system also come into effect, seeing drinks taxed by strength for the first time, and a new relief – named Small Producer Relief – to help small businesses and start-ups.

The changes to the alcohol duty system mean the duty on many of the UK’s favourites – including certain bottles of pale ale, pre-mixed gin and tonic, hard seltzer, Irish cream, coffee liquor and English sparkling wine, amongst others – has automatically lowered in shops and supermarkets.

The Small Producer Relief replaces and extends the previous Small Brewers Relief scheme and allows small businesses who produce alcoholic products with an ABV of less than 8.5% to be eligible for reduced rates of alcohol duty on qualifying products.

The government says the changes have been possible thanks to the UK being able to set excise polity to suit its needs after leaving the European Union.

Prime Minister Rishi Sunak said: “I want to support the drinks and hospitality industries that are helping to grow the economy, and the consumers who enjoy the end result.

“Not only will today’s changes mean that that the price of your pint in the pub is protected, but it will also benefit thousands of businesses across the country.

“We have taken advantage of Brexit to simplify the duty system, to reduce the price of a pint, and to back British pubs.”

The move has been welcomed by Conservative MP for Heywood and Middleton, Chris Clarkson, who said he “welcomes the government’s commitment to supporting a vital British industry and cornerstone of our communities.”