Draught beer and cider taxes cut in alcohol duty shake-up

Updated on 09/11/21

Taxes on draught beer, cider and sparkling wine are being cut as part of a huge overhaul of the UK’s alcohol duty system, the Chancellor has announced.

Rishi Sunak said this will include cutting the price of a pint in a pub by 3p as part of a new lower duty rate.

The Chancellor told MPs in his Budget speech that the planned increase in duty on spirits such as Scotch whisky, wine, cider and beer will be cancelled from midnight.

He said this alone will represent a tax cut worth £3 billion.

Mr Sunak criticised the current system of alcohol taxes as outdated and too complicated, as he revealed a raft of changes.

“We’re taking five steps today to create a system that is simpler, fairer, and healthier.”

The Treasury said it will slash the number of main duty rates from 15 to six as part of the sweeping changes, which will come into force from February 2023.

The Chancellor said changes to duties will see taxes increase on some higher strength drinks, such as some red wine and “white ciders”.

However, consumers of some lower strength products, such as rose, fruit ciders, liqueurs, and lower strength beers and wines, “will pay less”, he said.

Source : https://www.standard.co.uk/news/uk/rishi-sunak-budget-investors-ukhospitality-pubs-b962805.html