Budget Resolution No. 44: Rates of alcohol duty

What happened: On 6 November 2024, the House of Commons voted on Budget Resolution No. 44, which set the rates of alcohol duty as part of the government's autumn Budget. The resolution passed by 371 votes to 77. The measure implements changes to the alcohol duty system, including a freeze on duty rates for draught (on-tap) alcohol and an above-inflation increase on still wines and other non-draught products.

Why it matters: This resolution has immediate practical consequences for pubs, brewers, supermarkets, and consumers. By freezing draught duty rates, the government aims to support the on-trade hospitality sector, particularly pubs and bars, which have faced significant financial pressure in recent years. At the same time, duty increases on wine and spirits sold in off-trade retail settings (shops and supermarkets) generate additional tax revenue and have been framed by some as a public health measure. The resolution is one of several Budget decisions that, taken together, shape the tax environment for the alcohol industry.

The politics: Labour and Labour Co-operative MPs voted unanimously in favour, supplying the bulk of the 371 ayes. Four Green Party MPs also voted with the government. Opposition came primarily from the Liberal Democrats, who provided 60 of the 77 no votes, with the Scottish National Party contributing 9. Notably, the Conservatives largely abstained, with only 7 voting against and 109 absent, suggesting the party chose not to mount formal opposition. The vote sits within a broader Budget package in which the government is simultaneously raising National Insurance contributions and reforming business rates, both of which also affect the hospitality sector.