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.
“The stronger the drink, the higher the rate”, he said.
The chancellor added that some stronger spirits and wines will become more expensive, but weaker alcohols like beer and rosé will become cheaper.
There is also a 5% cut in taxes on pints pulled in pubs.
“We’re making sweeping reforms to our outdated alcohol duty system.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 said.
The Chancellor also scrapped a planned rise in duties.
“The planned increase in duty on spirits like Scotch Whisky, wine, cider and beer, will all, from midnight tonight, be cancelled,” Sunak said.
“We’re also taking five steps today to create an alcohol duties system that is simpler, fairer, and healthier.”
There will also be a new “small producer relief” which will include small cider makers for the first time, in a similar way to small brewers’ relief.
He says he will end the “irrational duty premium” of sparkling wines costing more than still wines of equivalent strength.
Duty is also being cut on fruit ciders to bring it in line with apple ciders.