JEREMY HUNT has announced a major win for beer lovers today in his latest Budget.
The Chancellor confirmed today in his Spring Budget, that he would continue to freeze alcohol duty at its current rate rather than increase it with inflation.
Credit: PAThe Chancellor announced major changes to alcohol duty in his Autumn Budget[/caption]
Taxes on beer, wine and spirits that were due to go up in August will now be frozen until February next year.
It means producers should not have to hike the price of beer, wine and spirits to offset raised levies.
The announcement marks a major win for The Sun’s Save Our Sups campaign to help both bosses and punters.
The Chancellor said: “Today I have decided to extend the alcohol duty freeze until February 2025.
“This benefits 38,000 pubs all across the UK – and on top of the £13,000 saving a typical pub will get from the 75 per cent business rates discount I announced in the Autumn.
“We value our hospitality industry and we are backing the great British pub.”
We explain what you need to know about the alcohol duty changes and how it will affect you.
How the alcohol duty freeze will affect pubs?
Planned increase in duty on spirits like Scotch Whisky, wine, cider and beer, will all be cancelled.
It means pubs won’t have to pay as much tax on the alcohol products they make.
Ahead of today’s freeze, hundreds of beer bosses had pleaded with Jeremy Hunt to give them relief in the Budget.
Hospitality chiefs have warned any further hike in the duty on beer, wine and cider would force thousands more pubs to close.
In a letter to the Chancellor, chiefs at the likes of Asahi, Budweiser and Greene King warned hundreds of pubs could go bust unless crippling rates are brought down at the Spring Budget.
In their February letter, beer bosses said: “The Spring Budget could help ensure that the Great British beer and pub sector can help contribute to wider growth and prosperity for the local high street and the wider national economy.”
The continued freeze on alcohol duty means that the cost of beers and spirits should stay the same.
The hope is that the announcement will help pubs and bars stay open despite a looming recession.
How the alcohol duty freeze will affect you?
By keeping alcohol duty frozen, the price of your average pint should stay the same.
Alcohol duty affects the tax manufacturers have to pay when making products.
With tax frozen the savings businesses make should then be passed onto consumers.
According to Hunt the freeze would mean:
2p less on the average pint of beer
1p less on the average pint of cider
10p less on the average bottle of wine
33p less on an average bottle of spirits
The price of the average pint has risen by £1 in the past decade and doubled since the last recession, the last time pub-goers across the country were forced to rein in spending on pints.
Lower strength alcohol, such as some beers, rose wine and fruit cider, will continue to be taxed less making it more affordable for customers in pubs or supermarkets alike.
It means that a pint of Guinness should cost around £4.20 in a pub – with 3p less tax when the freeze was first introduced last year.
A 440ml can of Strongbow will stay at around 61p in a shop, while the same beer poured as a pint down your local will be £3.50 per pint.
But high-strength booze may still cost more.
All drinks above 8.5% ABV will pay the same rate of duty, regardless of product type putting stronger beers, wines and spirits on an equal footing for the first time ever.
English and Welsh wines, compared with stronger imported wines, should stay less, which is good news for those shopping local.
Previously wine lovers would pay up to 13% more duty and VAT than beer drinkers.
The continued freeze should encourage small, innovative craft producers and other producers to make alcoholic drinks of less than 8.5% ABV.
What other announcements were made in the budget?
The chancellor made several other announcements in today’s budget.
Jeremy Hunt announced today we would see another 2p cut on national insurance that should come into effect in a matter of weeks.
The cut will affect around 27million workers and should save the average worker around £450.
There will be a new tax on vapes and e-cigarettes which will see prices increase.
It comes after a ban on disposable vapes was announced earlier this year as part of a clampdown.
In today’s Spring Budget Jeremy Hunt announced…
Fuel duty will be frozen and the 5p cut extended for a year
Alcohol duty will be frozen until February next year
National insurance was cut by an additional 2p
An extension of the Household Support Fund for the fifth time
Households on Universal Credit will get an extra year to repay emergency loans from the Government
A new tax on vapes, which will cause prices to rise
A one-off new tax on fags to ensure they are more expensive than the electronic alternative
The high income child benefit charge was raised from £50,000 to £60,000
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