Chancellor announces 1p cut for beer duty

By Ellie Bothwell contact

- Last updated on GMT

Related tags: Beer duty, Beer duty cut, Tax

It is estimated the move will create 3,800 new jobs
It is estimated the move will create 3,800 new jobs
The Chancellor of the Exchequer has announced a 1p per pint cut in beer duty for the third year in a row.

In today’s Budget announcement George Osborne added that duty on cider, Scotch whiskey and other spirits would be cut by 2% and wine duty will be frozen.

He said: “Last year, thanks to the persistent campaigning of my honourable friends I cut beer duty for second year in a row, which the industry estimated helped create 16,000 jobs.

“More pubs saved, jobs created , families supported and a penny off a pint for the third year in a row.”

Business support

Other announcements included the abolition of Class 2 National Insurance contributions for the self-employed and the abolition of the annual tax return from next year, while corporation tax will be cut to 20%.

He added that there will be changes to the Enterprise Investment Schemes and Venture Capital Trusts “to ensure they are compliant with the latest state aid rules and increasing support to high growth companies”.

Osborne said:  “12 million people and small businesses are forced to complete a self-assessment tax return every year. It is complex, costly and time-consuming.

“Millions of individuals will have the information the Revenue needs automatically uploaded into new digital tax accounts.

“A minority with the most complex tax affairs will be able to manage their account on-line.

“Businesses will feel like they are paying a simple, single business tax – and again, for most, the information needed will be automatically received.”

Commenting on the beer duty cut, Brigid Simmonds, chief executive of the British Beer & Pub Association, said the move will create 3,800 new jobs this year and put £180m in the pockets of beer drinkers and pubgoers.

You can see more reaction to the Budget proposals here and on our Twitter​ page. You can also view our live blog.

Related topics: Legislation

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Trust and respect

Posted by Graham Bell,

After a break can't believe way this topic has turned. Better to address why trust has been lost in the financial markets, if and how it can be restored, and respecting all and their opinions. In the meantime governments seem set to strip us all of previously guaranteed benefits from compulsory state funded schemes, and throw us all to the wolves.

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boring people

Posted by jon,

stop arguing about pensions nobody cares

in reality a 1p reduction on beer duty is a 1- reduction on the beer duty multiplier value NOT a 1p reduction on the cost of a pint

for the vast majority of products the reduction will amount to around 0.75p off the wholesale cost of a pint

by all means go and put your penny pots on the bar but youre only going to lose money as a result.

and as was mentioned earlier when the breweries announce a percentage based price increase they are also representing an increase in the beer duty portion of the cost. this of course they cant do as duty is a fixed cost. when a 3.7% price increase is announce this is, after the removak of beer duty from the calculation a real world 5.5% increase on the brewers GP figure

by representing the lower figure and keeping the beer duty figure within the calculation the breweries are all and without exception misleading their customers.

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Fake RFM

Posted by Objective Observer,

Such a sad individual like you clearly cannot see the irony of using the name of someone you despise, as your login.

A huge sickness must engulf your life.

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