The UK government has announced it will freeze duties on beer, wine and spirits, in the chancellor’s autumn Budget statement this afternoon.
However, Philip Hammond said that the government will increase duty on high-strength, low-quality alcohol from 2019.
The government has been under pressure to freeze duty on alcohol following Hammond’s decision in the spring Budget to increase spirits duty by 3.9%.
In his Budget speech, Mr Hammond said: “Excessive alcohol consumption by the most vulnerable people is all too often through cheap, high strength, low quality products – especially so-called white ciders.
“And so following our recent consultation we will legislate to increase duty on these products from 2019.”
But he added that the move to freeze tax on beer, wine and lower-strength ciders shows a commitment to Great British pubs.
He calculated that a bottle of whisky will be £1.15 less in 2018, and a pint of beer 12p less.
The Scotch Whisky Association had called for a reduction in tax on whisky after UK sales fell by more than 1 million bottles in the first half of the year, from 37.7 million to 36.7 million.
The Wine and Spirit Trade Association (WSTA) welcomed the freeze. Chief executive Miles Beale said: “We are pleased that the Chancellor has found his festive spirit and listened to the call from the WSTA and its members and has frozen wine and spirit duty.
“He has shown the government is in touch with what consumers want and is supporting an industry which is proving to be a real asset to British business.
“He has recognised that rebalancing the UK’s excessive duty rates is a win/win for both the Treasury, the wine and spirit trade – not to mention consumers. This decision will be celebrated by millions who will raise a glass this festive season.”
Chief executive of the Association of Licensed Multiple Retailers Kate Nicholls also praised the decision.
“At a time of rising costs, a freeze in the beer duty and a continuation of support for pubs on business rates is very welcome.
“The ALMR has been pushing for a duty freeze across all alcohol types, and this positive action will help tackle rising costs, saving the sector around £116 million, as well as underpinning consumer confidence.”
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