Home Business News Chancellors cut in alcohol duty ‘will be welcomed by thousands of businesses’ as it will ‘continue to drive the economy’

Chancellors cut in alcohol duty ‘will be welcomed by thousands of businesses’ as it will ‘continue to drive the economy’

27th Oct 21 3:20 pm

Chancellor Rishi Sunak today announced the “most radical simplification of alcohol duty” for over 100 years, saying there will be just six duty rates on alcohol.

Quite simply, the stronger the alcoholic drink is, “the higher the rate,” but added weaker drinks such as rose and beer will become cheaper for punters.

The Chancellor said, “We’re making sweeping reforms to our outdated alcohol duty system. Introducing a new system that is simpler, fairer, and healthier as well as permanently cutting the cost of a pint by 3p.”

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

The Night Time Association (NTIA) has welcomed the announcements, which will allow the hospitality sector to “continue to drive the economy.”

Michael Kill, CEO of the NTIA, said, “Today’s Budget had some important announcements that will enable the hospitality sector to continue to drive the economic recovery.”

“The announcements on business rates relief for hospitality, the simplification of Alcohol Duties, and the cut in duty for draught beverages will be welcomed by thousands of businesses in the night time economy.

“This sector was devastated by the pandemic, with many businesses sadly not making it through, but the resilience we have shown to this point has been incredible.

“Despite this, businesses are still suffering from increased operating costs and with the potential for interest rates to go up being very problematic, as so many having taken on debt during the pandemic.

“To these businesses, the announcement’s today will be important in allowing them to continue to support the wider recovery, and ensuring a limit to the extent of increased prices being felt by consumers.”

“Of course the improved forecasts for growth announced by the Chancellor today are good news, and the reopening of the night time economy has been a key part of this better-than-expected bounce back.

“We were disappointed that the Chancellor chose not to extend the 12.5% rate of VAT on hospitality, this is a missed opportunity, and it will prevent those forecasts from improving further still.”

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