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Autumn Budget 2021: Alcohol duty cut on sparkling wine, beer and cider

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Taxes on sparkling wine, rose, cider and draught beer will be cut as part of a major shake-up to the alcohol duty system, Chancellor Rishi Sunak has announced.

In his Budget speech, Sunak told MPs alcohol will be taxed in a progressive manner, meaning “the stronger the drink, the higher the rate”.

That means strong ciders and fortified wines will cost more, while prices of sparkling wines, fruit ciders, and lower strength beers and wines will fall.

The reforms will come into force from February 2023.

To support Britain’s pubs, the chancellor also announced duty rates on draught beer and cider will be cut by 5 per cent, taking 3p off the price of a pint from midnight tonight.

This is the biggest beer duty cut for 50 years and the biggest cut to cider duty since 1923, the Treasury said.

Sunak said: “We are taking advantage of leaving the EU to announce the most radical simplification of alcohol duties for over 140 years.”

Sunak also scrapped the planned increase in duty on spirits, a £3bn saving to consumers.

“The planned increase in duty on spirits like Scotch Whisky, wine, cider and beer, will all, from midnight tonight, be cancelled,” he said.

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