The UK government announced in December that it is extending the freeze on alcohol duty for a further six months, reversing a decision made by Chancellor Jeremy Hunt in his Autumn Statement ...
Obviously, they would have been rather disappointed by Mr Hunt's announcement. Lifting the freeze would have added 7p on a pint of beer and 38p on a bottle of wine. The Scotch Whisky Association said distillers were furious at the average increase of 12% in price. But that's not now happening for some time yet.
The duty has been either cut or frozen in every budget since 2013, and the new measures being introduced in August 2023 will reduce the duty on all drinks with alcohol content below 8.5%, and a blanket tax of 12.5% will be introduced for wines with alcohol content between 11.5% and 14.5%. The measures will run for 18 months from 1 August 2023 to 1 February 2025.
Treasury minister James Cartlidge said the extension would give "maximum certainty" to the industry ahead of challenging times. However, Labour said the sector would welcome the announcement, but branded it another embarrassing "U-turn" and said claims to be providing certainty were laughable.
I do feel that removing arbitrary thresholds on alcohol duty will cut red tape for pubs and other small venues, so that can only be a good thing.
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