Budget: Darling hikes cider duty by 10 per cent
Cider duty will rise by 10 per cent above inflation on midnight on Sunday to address a "long-standing anomaly", Chancellor Alistair Darling announced today.
Giving his final Budget before the general election, Darling also confirmed that duty on beer, wine and sprits will increase by two per cent above inflation, as per the duty escalator. This will mean an overall rise of around five per cent.
The definition of cider will also be changed, so that higher strength ciders are taxed more.
Tax on cigarettes will rise by one per cent above inflation.
The alcohol duty escalator was introduced in 2008, which should have meant a two per cent above inflation rise on duties until 2012. However this was extended until 2015 today.
The British Beer & Pub Association warned the latest hike would be bad news for the industry.
"This latest beer tax hike piles on the misery for Britain's hard-pressed pubs and beer lovers," said chief executive Brigid Simmonds.
"It is also a snub to voters, who by a majority of two to one wanted the Chancellor to scrap the beer tax escalator.
"Since 2008, beer tax has increased by an eye-watering 26 per cent - a £761 million tax rise - and we have seen the loss of 4,000 pubs and over 40,000 jobs up and down the country. Beer sales are down £650m in the last year alone."
"The Chancellor's claims that this is a Budget for investment and growth are hollow, considering he's just hit the beer and pub sector with a £161 million tax rise.
"The extension of the tax escalator for an extra two years also means more pain.
"Recently, there had been some signs of improvement in our industry but this recovery will be threatened by Mr Darling's tax rise, which is putting hundreds more pubs and thousands more jobs at risk."
Darling also announced £2.5bn support for small firms to boost skills and innovation, a one year business rate cut from October to help 500,000 companies and a doubling of investment allowance for small firms to £100,000.
He earlier warned the recovery to the economy was "still in its infancy".
