Government explains why beer duty cut does not break EU rules

By John Harrington

- Last updated on GMT

Related tags Alcohol duty escalator Alcoholic beverage

Treasury minister Sajid Javid has explained why the Government’s decision to reduce duty on beer but not other alcoholic drinks would not breach EU rules.

The move to cut beer duty by 1p on the average pint, and abandon the alcohol duty escalator on beer only, was welcomed by brewers but met with sharp criticism from wine, cider and spirit producers. There were claims that having different duty rates on different products could breach EU rules.

In a written question in Parliament, Labour MP Tom Blenkinsop asked Chancellor George Osborne “what assessment he has made of the extent to which his decision to cut duty for beer, but not other alcoholic beverages, complies with European law”.

Javid responded: “EU law requires duty on average strength beer and wine to be broadly similar, which following the Budget, remains the case across the UK.

“The average strength of wine has been increasing in recent years and per unit of alcohol the duty on wine has increased by less than the duty on beer.”

Related topics Beer

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