Drinks industry bodies are pushing for either a freeze or cut in alcohol duty in the new Labour government’s first Budget, due to be revealed by chancellor Rachel Reeves on October 30.

The Wine & Spirit Trade Association said it wanted to see a freeze in duty for at least two years, while the British Beer & Pub Association called for a cut in beer tax and reform of business rates.

A cut in duty might appear to be wishful thinking in an environment where the new administration is having to find ways to plug inherited gaps in the public coffers, including through the controversial decision to cut the winter fuel allowance for 10 million pensioners.

However, the WSTA argued an alcohol duty cut could actually raise money. Last year’s reform of the alcohol duty system pushed up duty by more than 10% on spirits and many beers and at least 20% on most wine.

The WSTA said a consequent decline in sales had resulted in a 10% drop in Treasury revenue from drinks duty, a fall of £1.3 billion, £757 million of which was from spirits.

“A freeze won’t cost government anything, but it will be financially beneficial to the Treasury, British business and consumers,” said WSTA chief executive Miles Beale.

He also called for the temporary easement for wine to made permanent. Current plans to end it next February will lead to further price increases on many wines.

The BBPA said a 5% cut in beer duty would create 12,000 jobs in the sector. “For the job market to flourish – and for us to keep supporting those jobs – it’s vital our sector is given the support it needs,” said chief executive Emma McClarkin.

A duty cut is also on the agenda of the Scotch Whisky Association, as the whisky industry battles against falling exports. “Beginning to reverse the damage by cutting duty on Scotch whisky will boost public finances and bolster the industry through this challenging period,” said chief executive Mark Kent.

The Society of Independent Brewers & Associates urged the new government to commit to the previous regime’s pledge to review the alcohol duty system after three years, in August 2026.

It said the signs so far were that the introduction of a lower duty band at 3.4% abv favoured bigger brewers.

Chief executive Andy Slee said: “We are already seeing that large global companies have significantly reduced their duty bills by benefiting from the new lower rate and that small independent breweries are stopping or reducing production of innovative beers such as imperial stouts.”