The Chancellor announced that a major reform of an outdated alcohol duties system is planned, after a consultation which will close on 30 January 2022. The number of duty bands is planned to fall from 15 to 6, with rates correlating more closely with the product’s ABV. Rates will be reduced for very low alcohol products (those with an ABV of less than 3.5%).
A small producer relief will be introduced, but be available only to products with an ABV of less than 8.5%.
In a measure which will support pubs, duty rates on draught beer and cider will be reduced by 5%.
In the meantime whilst these proposals are being consulted upon and introduced, alcohol duty rates will be frozen at current levels.
For the 12th consecutive year the planned increase in fuel duty has been cancelled.
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