Cheers to that! Kwarteng rolls out the barrels and SCRAPS planned alcohol duty rises for pubs saving drinkers 7p on a pint of beer and £1.35 on a bottle of wine
The Chancellor handed a boost to drinkers today by announcing the planned alcohol duty rises would be cancelled as part of a budget packed with £45billion worth of tax cuts.
The Treasury claimed the freeze would save £600million and be equivalent to 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine and £1.35 on a bottle of spirits.
Rishi Sunak, the former chancellor, announced in February that he would tax beverages based on their alcohol strength in a move experts warned could have cost wine drinkers alone up to £300m extra in spending.
Kwasi Kwarteng, said today: ‘Our drive to modernise also extends to alcohol duties’
His replacement, Kwasi Kwarteng, said today: ‘Our drive to modernise also extends to alcohol duties. I have listened to industry concerns about the ongoing reforms. I will therefore introduce an 18-month transitional measure for wine duty.
‘I will also extend draught relief to cover smaller kegs of 20 litres and above, to help smaller breweries. And, at this difficult time, we are not going to let alcohol duty rates rise in line with RPI.
‘So I can announce that the planned increases in the duty rates for beer, for cider, for wine, and for spirits will all be cancelled.’
The Chancellor also said that VAT-free shopping would be introduced for overseas visitors.
Sacha Lord, night time economy adviser for Greater Manchester, said the alcohol duty freeze would not be enough.
He tweeted: ‘Speechless. No VAT or Biz Rate support for Hospitality. Corporation tax cuts are completely useless if businesses aren’t turning a profit, or worse, closed.
‘These announcements will now mean last orders for thousands of Hospitality businesses meaning mass redundancies.
‘I’m absolutely clear. This Gov’t is just about big business, corporations and the fat cats.
‘They have just sent a strong message to the Hospitality industry: They don’t care. They have just thrown small family run businesses to the wolves.’