The price of beer and wine will now rise as the Chancellor Jeremy Hunt has now scrapped the freeze on alcohol duty which will be a huge blow “for pub goers this winter.”
In a televised emergency statement, Hunt said, “We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation.
“So whilst we will continue with the abolition of the health and social care levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms introduced in 2017 and 2021, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates.”
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Last month, Kwasi Kwarteng announced a freeze on the alcohol duty rate from February 2023 and was later sacked.
By the Chancellor scrapping the freeze on alcohol duty this will save around £600 million a year.
Emma McClarkin, chief executive of the British Beer and Pub Association said, “The chancellor’s decision today to reverse the alcohol duty freeze is a huge blow to brewers and pubs.
“The freeze would have delivered a £300m saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiralling costs and keep the price of pint affordable for pub goers this winter.
“The cost of doing business is completely out of control for pubs and brewers and the failure to act today to reduce pressures on businesses will hit them extremely hard.”