A U.K. government evaluation found the alcohol-duty changes encouraged lower-strength products and reformulation, particularly among beer producers, but could not establish effects on health or crime harms.
HM Revenue and Customs (HMRC) and HM Treasury published the review Oct. 28, assessing the first three years of reforms introduced in August 2023. The changes tied duty more closely to alcohol strength, created Draught Relief and Small Producer Relief, and simplified some business processes.
Low-strength beer listings on a major supermarket website increased from two in August 2023 to 33 in September 2024. The 12-month rolling average strength of beer released onto the U.K. market fell from 4.59% to 4.34% ABV between September 2024 and March 2026. The evaluation said wider trends also influenced producers, so the reforms’ effects could not be fully separated from other factors.
The report did not establish whether the changes reduced alcohol-related health or crime harms. It noted that indicators such as alcohol-specific deaths and hospital admissions can take years to respond, while pandemic effects and economic conditions also shaped outcomes during the period.
Draught Relief provided eligible businesses about £19 million a month on average after it became more generous in February 2025. Beer represented about 90% of its value; wine and spirits together generally accounted for less than 1%, reflecting the limited availability of qualifying formats. Stakeholders told the evaluation the relief helped pubs manage cost pressures and improve margins.
The review found no evidence so far that the relief lowered prices at pubs and bars relative to retail prices, increased on-premises consumption or expanded pub numbers. Pub, bar and inn numbers had been falling before the reforms and continued to decline afterward, although the pace eased in 2024 and 2025. The evaluation said it could not establish what prices or venue numbers would have been without the relief.
Small Producer Relief was widely used and helped small businesses remain resilient, but evidence of overall growth was mixed. Small brewer numbers continued to fall. Reported participation among small cider and other-fermented-product producers rose after digital returns began in February 2025, but the evaluation said the change may reflect reporting and coverage rather than an immediate increase in the underlying number of producers. The report also identified higher unit costs, reduced buyer power and limited market access as longer-term pressures on small producers.
The evaluation does not set future duty rates. Decisions on rates remain for fiscal events, with no specific next date named in the report.
