New U.K. alcohol taxes cut beer costs in pubs, but other drink prices will rise

A pint of beer is poured at Pressure Drop Brewery, in north London, in 2022.

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LONDON — It’s been a dreary summer in the U.K., which has seen some of the rainiest summer months on record, all while the country continues to deal with the highest inflation in Western Europe. Almost everything — from food to fuel to rent — is getting more expensive.

One thing has just got a little bit cheaper, though.

The U.K. government announced last week what it called the biggest shakeup of alcohol tax in a century. Alcoholic beverages will now be taxed simply based on their strength.

That means drinks having alcohol by volume (ABV) levels below 3.5% will be taxed at a lower rate than drinks with ABV over 8.5%.

Before this change, there were different tax rules for different types of alcohol.

In addition to the new changes, the government has also expanded its “Draught Relief” scheme, which freezes or cuts the alcohol duty on drinks poured on tap. This means that the duty pubs pay on each draft pint will be cheaper than in supermarkets. So a pint could be up to 11 pence — or 14 cents — cheaper, if the pubs pass this saving on to customers.

Britain’s Prime Minister Rishi Sunak serves a pint of stout that he poured during a visit to the Great British Beer Festival on Aug. 1, in London. He was heckled by a pub owner who was unhappy about the rise in duty for beverages with higher alcohol content.

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The government has dubbed…