The price of a pint has hit £8 in London, and it’s not been much better in the rest of the UK. But today (October 30), some (probably) good news: the government has just announced that it will be cutting alcohol duty on draught drinks, which means the price of pints could potentially go down.
The Chancellor of the Exchequer Rachel Reeves said in today’s budget:
‘I can confirm that alcohol duty rates on non-draft products will increase in line with RPI from February next year, but nearly two-thirds of alcoholic drinks sold in pubs are served on draft.
‘So, today, instead of up-rating these products in line with inflation, I am cutting draught duty by 1.7 percent.
‘Which means a penny off a pint in the pub.’
The announcement was followed by cheers from MPs in the house.
Alcohol duty was increased in August last year, adding 20 percent to the tax on more than 85 percent of all wines in the UK and more than 10 percent to tax paid on full strength spirits.
What does the cut on alcohol duty for draught alcoholic drinks mean?
The cut means that draught drinks manufacturers (AKA breweries) will have to pay a small amount less in tax on those products. This will probably be passed onto consumers: according to Reeves, the cut will mean ‘a penny off a pint in the pub’.
What drinks are included?
The tax cut applies only to draught drinks in pubs, like pints of Guinness, Neck Oil and craft beer. It does not apply to the wine and spirits, for which the alcohol duty tax is set to rise line with the Retail Price Index (a measure of inflation). Alcohol duty varies depending on the alcoholic content of the drinks: the stronger the drink, the more expensive the alcohol duty.
Will pints be cheaper?
Alcohol duty is generally passed onto consumers by manufacturers. At this stage, it’s hard to say how the cut will play out in practice and if it will actually mean that pints will get cheaper, but that’s certainly the idea. Reeves said: ‘That will mean a penny off a pint in the pub’.
How much does the average pint cost in the UK?
According to the Retail Price Index, the average price of a pint of draught lager in the UK was £4.79 in September 2024. Last month, The Independent reported that the average price of a pint of lager in London is £5.59, 80 pence above the national average.
Did you see: the UK’s cheapest pint of lager has been revealed – and it’s down south.
Plus: could this be the end of the Walthamstow Beer Mile?
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