Beer and pub trade bodies are stepping up calls for changes to UK beer duty ahead of the October 28, 2026 Budget. The British Beer and Pub Association (BBPA) is calling for a beer duty freeze and stronger draught-duty support.
Meanwhile, the Society of Independent Brewers and Associates (SIBA) is running its “Drop the Tap Tax” campaign, focused specifically on expanding Draught Relief for beer sold through pubs.
Draught Relief Explained
Draught Relief gives beer sold through pubs a lower alcohol duty rate than packaged beer sold through retail channels. The measure covers beer served from handpulls and keg taps, creating a distinction between draught and packaged products within the UK duty system.
SIBA states that Draught Relief currently stands at 13.9%. The organisation launched its “Drop the Tap Tax” campaign in early September 2026, calling on the Chancellor to expand the relief significantly in the October Budget. The campaign focuses on reducing the duty burden on draught beer.
Draught Relief in the UK Beer Tax: What the Research Says
Research commissioned by SIBA examines the potential economic impact of expanding Draught Relief.
Published on September 9, 2026, modelling from the Centre for Economics and Business Research (Cebr) assessed two scenarios.
A 50% Draught Relief rate could support 7,663 additional full-time equivalent jobs across brewing and the on-trade. It could also generate £309.99 million in gross value added (GVA), comprising £207 million in on-trade GVA and £103 million in brewing GVA. Moreover, the scenario projects 56.4 million additional pints sold.
A smaller increase to 30% could create 3,403 jobs, add £137 million in GVA and generate an estimated 25.2 million extra pints.
According to SIBA Chief Executive Andy Slee, “Lower tax on pub beer improves the economy, creates jobs and means more pub pints are being poured….Pubs and breweries are a cherished part of our communities and a Drop in the Tap Tax could give them a huge boost in the Chancellor’s Budget,” he says.
The above figures represent Cebr projections based on assumptions detailed in research commissioned for SIBA’s “Drop the Tap Tax” campaign.
Why Brewers Say the Current Tax Burden Is a Problem
SIBA says pubs and breweries face a particularly heavy tax burden, estimating that breweries pay tax equivalent to 40% of turnover.
The organisation argues that the current duty structure places additional pressure on businesses selling beer through the pub trade, where Draught Relief provides a lower duty rate than packaged beer.
The BBPA has separately called for a freeze on beer duty across the wider market, alongside continued support for draught beer. Its proposals form part of the association’s Budget representations and complement SIBA’s campaign for greater Draught Relief.
The BBPA beer duty freeze and SIBA’s “Drop the Tap Tax” campaign address the same underlying gap ~ the different duty treatment applied to packaged and draught beer.
What to Watch Before and After the UK Budget Beer Tax October 2026
Again, the UK Budget is scheduled for Wednesday, October 28, 2026, putting beer duty and Draught Relief in focus for the brewing and pub sectors.
SIBA is circulating its “Drop the Tap Tax” petition and campaign materials ahead of the announcement, encouraging publicans, brewers and hospitality businesses to share the campaign under #DropTapTax.
The Chancellor’s Budget decisions will determine any real impact on beer prices, pub margins and brewery costs. Cebr’s figures remain modelled scenarios rather than confirmed policy outcomes.
SIBA and the BBPA are expected to respond publicly once the Budget’s beer duty measures become clear.
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