East Yorkshire MP Sir Greg Knight supports new alcohol tax reform while business owners express concerns

The new policies will see over 38,000 UK pubs benefit from lower alcohol tax on the drinks they pour from tap.

Tax paid on pints and on some other drinks in pubs is now up to 11p cheaper than their supermarket equivalents thanks to ‘Draught Relief’. This effectively freezes or cuts the alcohol duty on the majority of drinks in pubs and helps level the playing field by protecting pubs, which are often undercut by supermarket competitors.

Other changes to the alcohol duty system also come into effect this month, which see drinks taxed by strength for the first time and a new relief - named ‘Small Producer Relief’ – designed to help small businesses and start-ups innovate and grow.

Sir Greg said: “I welcome the Government further supporting the hospitality industry which is essential to our tourism economy. Additional action should not be ruled out

either as our pubs are often the heart of our local community, especially in rural areas”.

“The previous duty system was complex and unfair but now that the UK is free to set excise policy, the Government has brought about some common-sense reform.”

However, Ellers Farm Distillery, based in Pocklington, is worried about the effect the new policies will have on both their business and their customers.

Andy Braithwaite, Managing Director at Ellers Farm Distillery, said: “The duty rate hike, especially for products falling under higher alcohol by volume (ABV) brackets, has put immense pressure on distillers, but also on consumer’s pockets.

“As a result, distilleries like ours, which solely focus on premium spirits with specific ABVs, are among the worst affected by these reforms.

“Whilst these duty reforms pose a considerable challenge to our business, it is consumers who are ultimately paying the price – it’s reflected on bar menus and on supermarkets shelves.

“We sincerely hope that policymakers and industry leaders will take these concerns into consideration and provide a more balanced and pragmatic approach to the alcohol duty reforms. This will not only support the growth of distilleries like ours but also uphold the diversity and richness of the UK's spirits industry.”