Budget: Beer duty to rise 4p a pint

Chancellor Alistair Darling dealt a severe blow to the pub trade today as he announced across the board above inflation duty rises on alcohol in the Budget.

During his first Budget speech, Darling said that duty on beer will rise by 4p a pint at midnight on Sunday.

Wine duty will increase by 14p a bottle.

Cider will rise by 3p a litre.

A 10-year freeze on duty on spirits was also ended, as the Chancellor slapped a 55p rise on a bottle of spirits.

He added that alcohol taxes would increase by two per cent above inflation for the next four years.

Tory proposals to increase tax on alcopops by 50p, and super-strength lager and ciders, while cutting tax on lower strength drinks, were ignored.

Pub trade groups were also pushing for a freeze on duty to help combat spiralling costs, sinking sales, fragile consumer confidence and the smoking ban. The UK already has some of the highest alcohol taxes in Europe.

Darling said it was only his tough stance on alcohol taxes and by closing tax loopholes that he was able to provide additional support for families and lift more children out of poverty.

Cigarettes will rise by 11p for a packet of 20 and a packet of five cigars by 4p.

Darling also confirmed plans to introduce a single 18 per cent rate of capital gains tax, scrapping taper relief which had allowed a 10 per cent rate for business assets held for at least two years.

However he confirmed he will grant a concession, first announced in January, allowing 90 per cent of small businesses to continue to pay capital gains tax of 10 per cent.

Funds available through the small firms loans guarantee will also rise by 60 per cent in the next year, Darling said.

On the environment, he said that all new non-domestic buildings would be zero-carbon by 2019.

For trade reaction to the Budget, keep checking thepublican.com