The UK Government has announced several key changes to alcohol duty as part of the Autumn Budget 2024, and the WSTA published a full briefing on the budget, with a summary of all relevant policies for businesses in the industry. In short, it could be summarised as follows:
- Duty Increase: Alcohol duty will rise by 3.65%, effective from 1st February 2025, in line with the forecast Retail Price Index (RPI) for Q2 2025.
- Draught Relief: The cut in drought relief will be reduced by 1.7%, effective from the same date.
- Temporary Easement: The temporary duty easement is set to end as scheduled on 1st February 2025.
- Duty Stamps: The scheme for duty stamps will conclude by 1st May 2025.
The Office for Budget Responsibility (OBR) has revised downwards its forecast for alcohol duty receipts, attributing it to lower-than-expected alcohol consumption in 2024-25. However, it projects long-term growth in receipts. Additionally, the discount for Small Producer Relief has been increased, with conditions for eligibility remaining unchanged.