Government says this will provide certainty to pubs, breweries and distilleries facing tough challenges.
End date aligns with new simpler alcohol tax system taking effect, with Chancellor reserving decision on future duty rates for Spring Budget 2023.
In a statement to the House of Commons on 19 December, Exchequer Secretary to the Treasury James Cartlidge laid out a plan designed to provide certainty and reassure pubs, distilleries, and breweries as they face a challenging period ahead. The alcohol duty freeze will be extended by six months from 1 February to 1 August 2023.
While new duty rates usually come in on the 1 February each year, Mr Cartlidge set out that the duty rates decision will be held until the Chancellor Jeremy Hunt delivers his Spring Budget on 15 March 2023.
Further, the Minister made clear that if any changes to duty are announced then, they will not take effect until 1 August 2023. This is to align with the date historic reforms for the alcohol duty system come in, and amounts to an effective six month extension to the current duty freeze.
These changes will, Government says, provide pubs and other alcohol-related businesses with increased certainty to plan and make investment decisions more effectively.