Heineken will pass on cider duty cuts

Drinks giant Heineken, which owns cider brands Bulmers and Strongbow, will pass the 8% reduction in cider duty on in full to customers.

Chancellor George Osborne announced in today's Budget that the 10% above inflation increase on cider, which was announced at the last Budget in March, will be reduced by the end of this month.

VAT will increase to 20% in January, and while alcohol duty remains the same for now, a review into taxation and pricing has been set for the autumn.

A Heineken statement said: "As the world's leading cider producer, we are delighted that the Chancellor has recognised that the targeting of cider in the March budget was unfair and has confirmed that the duty increase will reduce from 13% to 5% (including inflation) in line with other alcohol categories.

"We will, of course, be passing on this duty reduction to our customers in full. We are also pleased that there has been no additional increase in beer duty — news that will be welcomed by drinkers across the UK.

"The news that the Government is carry out a fundamental review alcohol taxation, in particular a more targeted approach, is welcome and we look forward to contributing in full.

"The increase in VAT next year will be a difficult challenge to pubs, as many are already struggling in the current economic environment. This tax increase is not welcome, but we hope this will be short-term pain for long-term gain."