The government has extended its freeze on alcohol duties at today’s Budget.
The Autumn Statement last year froze duties from 01 February – 01 August 2024. This extension means nominal duty rates will remain the same until 01 February 2025.
Freezing alcohol duties is a real-terms cut and leads to alcohol becoming more affordable. Our Chief Executive, Dr Katherine Severi, explained why this is bad news:
Alcohol duty freezes over the past decade have led to alcohol becoming much more affordable, with it now being at its most affordable level since before Rishi Sunak was born. This is a political choice that has directly led to increases in alcohol consumption and subsequent deaths.
It also damages the UK economy because alcohol is the biggest risk factor for ill health and death among working age people. If the government was serious about long-term economic stability, it simply would not make such a short-term, headline-grabbing decision.
Let’s be clear, this is a tax break for the multinational alcohol industry, meaning the government has chosen big business over the taxpayer. Money will need to be found elsewhere, either through cuts to vital public services or tax increases. It also harms pubs, as freezing duty allows supermarkets to maintain much lower prices on alcohol compared to pubs, encouraging people to drink more at home.
For more information on why cuts and freezes do not help the hospitality industry, read our report: Dispelling Six Industry Myths About Alcohol Taxation.