In my previous blog post, I mentioned the upcoming alcohol duty tax rises that come into effect from 1st August 2023, however, there is some good news! Fear not, as amidst these wine tax changes, there's a glimmer of good news for those who enjoy their drinks at pubs and restaurants. Under the "Brexit pubs Guarantee," drinks purchased in hospitality venues will see a price cut starting in August.
Dubbed "Draught Relief," this measure will reduce alcohol duty by 9.2% for beer and cider and an impressive 23% for wines and spirits. So, if you prefer to indulge in your favourite wine while dining out, so cheers to that!
"Because we left the EU we can make sure our alcohol duty system works for us. From next month the whole system will be simpler – the duty will reflect the strength of the drink. We will also protect pubs and brewers with our Brexit Pubs Guarantee keeping Draught Duty down, and a new Small Producer Relief" - Gareth Davies, Exchequer Secretary to the Treasury via Gov.uk
"After listening to feedback from industry, economists, public health groups and many business owners, the new Alcohol Duty system will be based on the founding principle of taxing alcoholic products by strength, ensuring consistency across the board for the first time. The new system will support the government’s public health objectives and provide extra support to small producers, pubs and the hospitality sector." - Jonathan Athow, Director General of Customer Strategy & Tax Design, HMRC via Gov.uk
They are talking about a massive 23% reduction on qualifying wine-based, spirits-based, and other fermented products in the beloved pubs and restaurants.
It has been announced that pubs will now pay less duty than their supermarket counterparts. This is part of the government's extraordinary 'Brexit Pubs Guarantee' in action, an epic promise to support cherished watering holes.
Low-strength drinks and alcoholic alternatives with an ABV below 3.5% are also getting their spot in the limelight!
They'll now be charged at an all-new lower rate of duty. This means a world of possibilities where responsible choices are celebrated.
So there it is — a positive for the hospitality scene that also supports product innovation.