Press release

27 Oct 2021 London, GB

The duty of the Chancellor: alcohol reform

Freed from the constraints of the European Union, the Chancellor has reformed the system to link duty to alcohol bands. The overall effect is a slight reduction in receipts from alcohol duty, rising to just over £150 per annum by 2026, a cut swamped by the £600m give away resulting from freezing all alcohol duties for the next year

Press contact
Adam Holden

Senior Manager, Media Relations, Ernst & Young LLP

Passionate media relations and public relations professional helping to provide insight and clarity to complex business issues. Husband and father to twin boys, and a golden retriever.

Related topics Tax

Chris Sanger, EY’s Head of Tax Policy, commented: “Freed from the constraints of the European Union, the Chancellor has reformed the system to link duty to alcohol bands. The overall effect is a slight reduction in receipts from alcohol duty, rising to just over £150 per annum by 2026, a cut swamped by the £600m give away resulting from freezing all alcohol duties for the next year. 

“Looking at the impact on the sector, the cuts in beer and cider duty, as well as the 50% business rates discount, will provide some welcome relief for the hospitality sector. The sector is facing a combination of challenges, including rising food and energy costs, and National Living Wage and employers’ NI contribution increases from next April. However, the duty changes may not be enough to prevent rising prices at bars and tills as companies in the sector try to cover the cost of all their input prices.”

Autumn Budget 2021

To find out more about the latest Budget developments, visit our dedicated web page

Learn more