We have submitted our Autumn Budget 2026 Submission to the Government this week. As part of our work to advocate and support the no, low and mid-strength industry, we have asked for a VAT removal or reduction to alcohol-free drinks. This proposal is now under consideration by the Chancellor of the Exchequer ahead of his upcoming Budget.
We propose that the VAT removal or reduction for alcohol-free drinks is applied across both the on-trade (hospitality venues) and off-trade (retail and wholesale) sectors.
A modest £75 million Treasury investment through the VAT removal could drive transformative progress in nationwide alcohol moderation and could support several Government priorities at once:
- encouraging alcohol moderation in line with the NHS 10 Year Health Plan;
- making alcohol-free alternatives more affordable;
- supporting consumers and the hospitality industry if the drink-drive limit is lowered;
- providing targeted support to the hospitality industry; and
- encouraging investment and innovation in the UK alcohol-free drinks sector.
A clearer financial incentive for alcohol-free drinks would help consumers choose alcohol-free alternatives without paying a price penalty, while supporting producers and hospitality businesses to respond to changing drinking habits.
You can read our full submission here.
Submitting this proposal to Government was made possible thanks to our brand members’ support, which funds the work of our Public Affairs and Communications Officer, Lauren, who took the lead on developing and submitting our proposal.
