Skip to main content
Banner image for Andrew Selous

Andrew Selous

South West Bedfordshire

Main navigation

  • Home
  • About Andrew
  • News
  • Campaigns
  • Constituency
  • Surgeries
  • In Parliament
  • Contact
  • Campaign Responses
  • Coronavirus Help

Alcohol Duty

  • Tweet

The Autumn Budget 2021 confirmed that duty rates on beer, cider, wine, and spirits will be frozen for another year, a move which will save consumers £3 billion over the next five years and provide further support to the hospitality industry and its suppliers as they recover from the pandemic. Duty rates on draught beer and cider will be cut by 5 per cent, taking 3p off a pint and further supporting pubs.

I was glad to see the announcement in the Autumn Budget 2021 that, following a review, the alcohol duty regime is to undergo a major simplification. The old system was outdated system that set rates based on historical anomalies, and a new regime will be fairer to both consumers and producers, and promote product innovation in response to evolving consumer tastes.

This radical simplification of the duty system will reduce the number of main rates from 15 to 6, and tax products in proportion to their alcohol content.

All tax categories, such as beer and wine, will be moved to a standardised set of bands, with rates for products between 1.2-3.4 per cent alcohol by volume (ABV), 3.5-8.4 per cent ABV, 8.5-22 per cent ABV, and above 22 per cent ABV. Above 8.5 per cent ABV, all products across all categories will pay the same rate of duty if they have the same proportion of alcohol content. Registration and payment will also be simplified, and the practice where individual products have different administrative rules will end.

The new progressive manner in which alcohol is taxed will ensure higher strength products incur proportionately more duty, and these rates will be the same across all product categories. This change will address the problem of harmful high-strength products being sold too cheaply, and the new rates for low strength drinks below 3.5 per cent ABV will encourage manufacturers to develop new products at lower ABVs, giving consumers greater choice and greater options to drink responsibly.

I welcome the introduction of a new small producer relief which will build on the previous success of the Small Brewers Relief, which will benefit cidermakers and other producers of lower ABV drinks. This will allow small producers to diversify their product range to other products below 8.5 per cent ABV while still benefitting from reduced rates.

Furthermore, these reforms mean higher strength still wines will pay more duty, while lighter wines below 11.5 per cent alcohol by volume will become cheaper. I welcome that the 28 per cent higher duty rate on sparkling wine will be abolished, and that from 2023 sparkling and still wines of the same strength will pay the same duty. Wine producers were encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022, and I expect that my colleagues at the Treasury will carefully consider all submissions made by our country's wine industry while they review the responses they have received. However, I have heard representations from the wine industry that they think the proposals will be more complicated and add unnecessary cost and bureaucracy. Therefore, I have written to the Chancellor of the Exchequer to raise my concerns about this and will continue to follow this issue closely.

I have also spoken to colleagues at the Treasury, who assure me that they will be consulting on the technical details of the Draught Relief, including keg and barrel sizes. It is the intention that most draught beer for sale in pubs will qualify for the relief, including where it is made by smaller or craft brewers. There is an ongoing industry consultation on the criteria to ensure that the relief supports pubs rather than supermarkets, given that smaller kegs are also sold for drinking at home. I encouraged anyone in the industry that contacted me to respond to the alcohol review consultation before the deadline of 30 January 2022, and I expect that my colleagues at the Treasury will carefully consider all submissions made by our country's brewing industry while they review the responses they have received. I will continue to follow this issue closely. 

Finally, the technical details have outlined how new small producer reliefs will be finalised through the alcohol duty review consultation process, and this will include and exploration of the merits of any changes to the minimum juice content through the alcohol duty review consultation. I recognise that the UK has a history of cidermaking dating back thousands of years, a tradition that has produced a variety of cidermaking traditions throughout the country. As you know, the present requirement under the Alcoholic Liquor Duties Act 1979 that 35 per cent of the finished product be made up by apple juice was last revised in 2010, following consultation with cidermakers. I am not aware of any plans to amend this provision in the 1979 Act.

Campaign Responses

  • Access to Waterways
  • Adult Dependant Relative Visa
  • Adult Social Care
  • Afghanistan and Pakistan
  • Afghanistan: Nowzad
  • Afghanistan Refugees
  • Afghanistan Refugees (Christians)
  • Afghanistan Withdrawal
  • Age UK's Winter Warmth Campaign
  • Air Passenger Duty
  • Air Quality
  • Alcohol Duty
  • All-Party Parliamentary Groups (APPGs)
  • Animal Research
  • Animal Testing - Dogs
  • Animal Welfare Legislation
  • Animal Welfare (Kept Animals) Bill: Cats
  • Animal Welfare (Kept Animals) Bill: Dogs
  • Animal Welfare (Sentience) Bill
  • Arms Exports
  • Arms Exports: Israel
  • Arthritis
  • ASRU Change Programme
  • Assisted Suicide
  • Asylum Support and Employment
  • Aviation Industry Concerns
  • Badgers and Bovine TB
  • BBC Funding
  • BBC World Service
  • Behaviour in Schools
  • Bite Back Better Campaign
  • Bomb Disposal and Whales
  • Bowel Cancer Awareness Month
  • Breast Cancer
  • Building Safety Bill
  • Bus Deregulation
  • Business and Human Rights
  • Campaign - #CatchUpWithCancer
  • Cancer Research
  • Cancer Treatment
  • Carers and Unpaid Carers
  • Cash Availability and Acceptance
  • Channel 4
  • Child Maintenance Service (CMS)’s Collect and Pay Service
  • Child Poverty
  • Children with Sight Loss (Education)
  • Climate and Ecological Emergency Bill
  • Climate Change
  • Commercial Energy Prices
  • Consular Services in Afghanistan
  • Conversion Therapy
  • COP26
  • COP26 Commitments (100 Days)
  • Coronavirus: Clinically Extremely Vulnerable
  • Coronavirus: Coronavirus Act
  • Coronavirus: Face Coverings
  • Coronavirus: Face Coverings in School
  • Coronavirus: Hospitality Support
  • Coronavirus: International Travel
  • Coronavirus: Mandatory Vaccination
  • Coronavirus: NHS and Social Care Staff (Vaccines)
  • Coronavirus: Provision of Tests
  • Coronavirus: Regulations and Living with COVID
  • Coronavirus: Self Isolation
  • Coronavirus: Support for the Self-Employed
  • Coronavirus: Testing (Childminders)
  • Coronavirus: Travel Industry Support
  • Coronavirus: Vaccines (Developing Countries)
  • Coronavirus: Vaccine Passports
  • Coronavirus: VAT Threshold
  • Cost of Living
  • Courier Employment Rights
  • Dangerous Dogs Act
  • Deaths Related to the Benefits System
  • Defibrillators and the Automated External Defibrillators (Public Access) Bill
  • Dementia Research and Diagnosis
  • Democratic Freedoms in the UK
  • Derby County Football Club
  • Diabetes
  • Disability Benefit Assessments
  • Domestic Abuse (Serial Abusers & Stalkers)
  • Domestic Abuse (Time Limits)
  • Dr Liam Fox’s Down Syndrome Bill
  • Early Years Funding
  • Education and Development Globally
  • Elections Act
  • Elections Act - Blind and Partially Sighted Voters
  • Elections Act - Electoral Commission
  • Elections Act - First Past the Post
  • Elections Act - Joint Campaigning
  • Electronic Communications Code
  • Elephants and Ivory Sales
  • End Child Poverty Coalition
  • Endometriosis and Polycystic Ovary Syndrome (PCOS)
  • Energy Price Cap
  • Energy Security Strategy
  • Environment Bill
  • Epilepsy
  • Epilepsy: Personal Independence Payment (PIP)
  • Fairtrade Fortnight Campaign
  • Fire and Rehire Tactics
  • Fireworks
  • Football Governance
  • Football Index
  • Fracking
  • Free Trade Agreement with Australia
  • Fuel Duty and Prices
  • Fuel Shortages
  • Fur and Foie Gras
  • Future of the TV Licence
  • Gambling with Credit Cards
  • Gambling Regulation
  • Gas Boilers
  • Glue Traps
  • Good Law Project & Runnymede: Mike Coupe & Dido Harding
  • Government Contracts
  • Green Alternatives to Gas Boilers
  • Green Finance
  • Green Investment - 2021 Spending Review
  • Green New Deal
  • Guidance on Boycotts (Stop BDS)
  • Hamas
  • Hate Crime (Misogyny)
  • Health and Care Bill
  • Health and Care Bill: Integrated Care Boards and Private Sector Providers
  • Health and Care Bill: Privatisation
  • Health and Care Bill: Workforce
  • Health and Disability Green Paper
  • Heat Pumps
  • Hedgehogs
  • Hedgerows
  • HGV Driver Shortage
  • HIV and AIDS
  • Holiday Lets
  • Housing and the Queen’s Speech
  • Housing Emergency (Shelter)
  • Housing First
  • HS2 and the Environment
  • HS2: Cost Transparency
  • HS2: General
  • Human Rights Act
  • Hunting Act 2004
  • Illegal Immigration (Nationality and Borders Bill)
  • Improving Access to the Countryside
  • Intellectual Property
  • Interest on Student Loans
  • Internet Regulation
  • Islamophobia
  • Israel: Amnesty International
  • Ivory Sales
  • Judicial Review
  • Keeping Primates as Pets
  • TV Licence Fee
  • Live Animal Exports
  • Living Wage and Key Workers
  • Loan Charge
  • Local Electricity Bill
  • Maternity Services
  • Meadows and Grasslands
  • Medicinal Cannabis
  • Menopause
  • Mental Health
  • Mental Health Facilities
  • Mental Health Hubs (Children and Young People)
  • Midwifery Units
  • Migrant Channel Crossings
  • Modern Slavery
  • Motor Neurone Disease
  • Multiple Sclerosis
  • National Insurance Contributions
  • Nationality and Borders Act (Accommodation for Asylum Seekers)
  • Nationality and Borders Act (Asylum and Refugees)
  • Nationality and Borders Act (Clause 9)
  • Nationality and Borders Act (Clause 11)
  • Nationality and Borders Act (Overseas Asylum Processing)
  • Nationality and Borders Act (Unaccompanied Children)
  • Nazanin Zaghari-Ratcliffe
  • Neonicotinoids
  • New Plan for Immigration
  • NHS Pay
  • NHS Preparations for Winter
  • NHS Privatisation
  • Nigeria: Mubarak Bala
  • Offshore Wind
  • Oil Drilling and Cambo Oil Field
  • Online Marketplaces (Regulation)
  • Online Safety Bill (Misinformation)
  • Online Safety Bill (Pornography)
  • Online Safety Bill (Private Communications)
  • Online Safety Bill (Protecting Children from Online Porn)
  • Online Safety Bill (Suicide and Self-Harm)
  • Online Safety Bill (Women and Girls)
  • Onshore Wind
  • Onshore Wind (Planning)
  • Palestinian Human Right Defenders
  • Palliative Care
  • Pancreatic Cancer
  • Parental Bereavement
  • Parkinson's Disease
  • Pavement Parking
  • Peat
  • Plastic Pollution
  • Police and Sarah Everard Case
  • Police, Crime, Sentencing and Courts Bill
  • Police, Crime, Sentencing and Courts Bill (Climate Protesters)
  • Police, Crime, Sentencing and Courts Bill (Courts and Tribunals)
  • Police, Crime, Sentencing and Courts Bill (Data Extraction)
  • Police, Crime, Sentencing and Courts Bill (Parliament Square)
  • Police, Crime, Sentencing and Courts Bill (Protection of Retail Workers)
  • Police, Crime, Sentencing and Courts Bill (Protests)
  • Police, Crime, Sentencing and Courts Bill (Protests and Noise)
  • Police, Crime, Sentencing and Courts Bill (Protests Tactics)
  • Police, Crime, Sentencing and Courts Bill (Unauthorised Encampments)
  • Polluter Pays Bill
  • Prescription Charges
  • Prisons (Violence) Bill
  • Private Rented Sector
  • Processing Asylum Claims in Rwanda
  • Proportional Property Tax
  • Prostate Cancer
  • Protection of Pollinators
  • Public Inquiry on COVID-19
  • Public Sector Pensions
  • Public Service Pensions and Judicial Offices Bill
  • Puppy and Kitten Sales
  • Radiotherapy
  • Rail Vs Air Travel
  • Reforming Taxi and Private Hire Vehicle Licensing
  • Right to Work Checks
  • Royal Mail
  • Sarcoma UK Drop-In Session
  • Save Our Pubs (CAMRA)
  • SEND Funding
  • Sentencing (Dangerous Driving)
  • Sexual Harassment
  • Shared Parental Leave
  • Social Care Cap (Means Test)
  • Stamp Duty Land Tax
  • State Pension
  • State Pension Age
  • Statutory Sick Pay
  • Stop and Search
  • Support for Deaf Pupils
  • Support for People with Disabilities
  • Support for Renters
  • Support for Road Hauliers
  • Support for the Pig Industry
  • Support for the Travel Industry
  • Sustainable Fishing
  • Tax Avoidance
  • Teachers’ Pay
  • Tourism and VAT
  • Training Collars for Dogs
  • Transport for Disabled People
  • Trophy Hunting
  • UK Foreign Aid
  • UK Trade and Business Commission’s First Annual Report
  • Universal Credit and Working Tax Credits - £20 per Week Uplift
  • Universal Credit Standard Allowance for Those Under 25
  • Universities: Antisemitism (IHRA Definition)
  • Uplands
  • Vaccinations for COVID-19
  • Valerie's Law
  • Vaping
  • VAT on Electric Vehicle Charging in Public Places
  • Violence Against Women and Girls
  • Voter ID
  • Voting System
  • Water Fluoridation
  • Wealth Tax
  • Welfare of Farm Animals
  • Young People’s Wellbeing

Andrew Selous MP South West Bedfordshire

Footer

  • About RSS
  • Accessibility
  • Cookies
  • Privacy
  • About Andrew
  • Constituency
  • In Parliament
This website is funded from Parliamentary allowances.
Copyright 2022 Andrew Selous MP South West Bedfordshire. All rights reserved.
Powered by Bluetree