Darling ignores calls for beer duty cut

Chancellor Alistair Darling has ignored industry calls for a cut in beer duty in his Pre-Budget report today.

However the industry can breathe a sigh of relief that Darling indicated no plans to increase duty further.

He confirmed that the rate of VAT would go back to 17.5 per cent on January 1, but said there were no plans to increase it further.

The Chancellor did however acknowledge the problems small firms have had in borrowing from banks and said the government will "work with businesses" to help them get loans.

He promised a scheme for bank loans to small businesses would be extended for an extra 12 months, guaranteeing a further £500m of loans.

Darling also announced that the threshold for paying business rates on empty commercial properties will rise, meaning any premises with a rateable value below £18,000 will be exempt for the next two years.

And the increase in corporation tax for small firms will also be deferred, Darling confirmed.

He also annouced a two per cut in bingo duty from 22 per cent to 20 per cent.

The trade had lobbied for a cut in alcohol tax to its previous level when the VAT rate returns to 17.5 per cent in the New Year.

In last year's PBR, the Chancellor dampened any joy over a drop in VAT by handing out an eight per cent rise in alcohol duty.

In today's speech, Darling said he expected growth in the UK economy in 2010 to be between one and 1.5 per cent.