Chancellor Jeremy Hunt has said the halt on alcohol duty tax would be extended until 1 August 2023, a reversal of proposals in the Autumn budget.
Duty is normally paid on tobacco and alcohol and ranges on cost depending on strength and quantity of the alcohol.
VAT for alcoholic products remains active and operates at a standard rate of 20%.
“Hospitality is a major part of the economy, and while these remain challenging times, we are doing everything we can to support individual hospitality businesses of every size so that they can have a prosperous new year” said James Cartlidge, Treasury Minister.
Venues across the UK are suffering due to increased energy bills, staff shortages, reduced customer spending and price inflation (which the relief aims to combat).
Any changes planned will be announced in the upcoming Spring Budget ,15 March 2023, giving bosses four months minimum to prepare before the rates come into effect.
“Importantly, to minimise the burden on business, it avoids the sector having to deal with multiple changes to duty rather than one” added Cartlidge.
“This freeze will allow £180mln to be reinvested into our sector at a critical moment and inject a much-needed flurry of festive cheer for pubs and breweries” said Emma McClarkin, chief executive of the British Beer and Pub Association.