Rachel Reeves has announced she will be cutting the duty on draught beer cut by 1.7 per cent.

The Chancellor made the announcement in her Budget in the Commons saying it would lead to a “penny off the pints at the pubs.”


Alcohol duty rates on non-draught products will increase in line with RPI from February next year.

The announcement was met with cheers from MPs in the Commons.

u200bReeves said it would cut a penny off a pint in a pubReeves said it would cut a penny off a pint in a pubPA/Getty

In August last year, the previous Tory Government introduced the largest Alcohol Duty increase in almost 50 years adding 20 per cent to the tax on over 85 per cent of all wines in the UK and more than 10 per cent to tax paid on full strength spirits.

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.

More to come…