This is how much the price of your pint is going to fall by
Rachel Reeves has announced a decreased draught duty as part of the 2024 Autumn Budget – saving drinkers a penny off a pint in the pub.
The Chancellor did say alcohol duty rates on non-draught products will increase in line with RPI next year as a part of Labour’s efforts to plug what it claims is a £22 billion ‘black hole’ in public finances.
There was some good news for beer lovers – under Labour’s plans, the price of a pint pulled in a pub will decrease by a penny.
According to a document released by the government to explain Budget decisions, the move ‘will encourage responsible drinking in social, controlled settings’.
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Alcohol duty was frozen for almost three years from autumn 2020 to August 2023, during which time the UK saw an increase in taxable revenue.
But following then-Chancellor Jeremy Hunt’s tax on alcohol in 2023 in line with inflation, prices went up by 10%. He also changed the way duty was calculated for wine, which saw it increase in price by 20%.
From September 2023 to August 2024 alcohol duty raised £11.8 billion, down from £13.1 billion in the same period the year before.
The biggest drop was for spirits, whose revenue plummeted by £750 million, followed by beer which saw a £320 million drop in profits.
Beer campaign group Camra backed the Chancellor’s move to cut duty on draught beer, with chairman Ash Corbett-Collins saying he was ‘pleased’ by it.
He said: ‘This will help pub goers as well as independent breweries and cider producers who sell more of their products into pubs, and recognises the principle that drinking in the community setting of the local pub is far preferable to the likes of cheap supermarket alcohol.’
The drinks firm behind Magners and Tennent’s said it has seen ‘some consumer caution’ ahead of today’s budget.
It came as C&C Group revealed lower sales for the past half-year as poor summer weather hit demand for cider.
Shares in the company slipped on Tuesday morning as a result.
The company said: ‘Trading conditions remain tough, and sentiment regarding the UK autumn Budget has generated some consumer caution; however, positively, we have well-executed plans in place for the Christmas and New Year period, as well as encouraging trading momentum.’
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