You are here: Home - Household Bills - News -

Mini Budget 2022: Tax increase on beer, wine and spirits axed

Written by: Rebecca Goodman
A planned increase to the duty charged on beer, wine and spirits is to be cancelled, Chancellor Kwasi Kwarteng confirmed in today's mini Budget.

Kwarteng said alcohol duty on alcohol would be frozen from 1 February 2023 to provide additional support to this sector.

The move is expected to save consumers 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine and £1.35 on a bottle of spirits, according to the Treasury.

It is also expected to save £600m and give a much-needed boost to the hospitality sector which was severely impacted by the pandemic.

The Chancellor also announced an 18-month transitional measure for wine duty and extended draught relief to cover smaller kegs of 20 litres and above, to help smaller breweries.

Boost for independent shops

Martin McTague, National Chair of the Federation of Small Businesses (FSB), said: “We’re pleased that the planned reforms of alcohol duty have been scrapped.

“The complexity of the planned changes to alcohol duty announced earlier this year would have meant that small retailers would have had to calculate many different levels of duty based on alcohol levels, which would be very challenging to administer and properly account for.

“The news that the current system will be retained is therefore helpful and will not put small independent wine and beer shops at a disadvantage compared to larger rivals with more sophisticated systems, as would otherwise have happened.”

It was also announced that reforms to modernise alcohol duties are being moved forward and the government is due to publish a consultation on these plans.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week