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<p>The Government believes that the reforms announced at Autumn Budget 2021 will achieve
a duty system that is simpler, fairer and better supports public health in the round.</p><p>
</p><p>There will be one duty band for all products between 8.5%-22% ABV based on
their alcohol content. This simplifies the existing system by eliminating the different
duty rates for still wines, sparkling wines, spirit-based liqueurs and stronger beers,
and replacing them with a single rate.</p><p> </p><p>In principle, the Government
considers it is right to tax higher strength products a higher rate of duty per unit.
Introducing one basic rate per litre of pure alcohol would fail to target higher strength
products. As set out in the summary of responses published in October 2021, public
health groups and economists have cited a link between cheap, high strength spirits
(such as vodka) and alcohol-related harms, as the volume of drink needed to reach
intoxication is smaller with higher strength drinks.</p>The Treasury is continuing
to engage with other Government departments and interested stakeholders on these reforms.
A consultation ran from 27 October 2021 to 30 January 2022, and the Treasury is now
analysing the responses. Further updates will be provided in due course.
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