 New alcohol duty changes will come into place from today, the Prime Minister has announced. Under new 'common-sense' principles, first set out by Rishi Sunak in 2021, when he was Chancellor, tax is now being levied according to a drink's strength. The new system aims to encourage drinkers to cut back by taxing all alcohol based on its strength, rather than the previous categories of wine, beer, spirits, and ciders. Taxes on draught pints will not change, an additional measure designed to support pubs. Mr Sunak described the overhaul as 'the most radical simplification of alcohol duties for over 140 years', enabled by Britain's exit from the EU. In March's Budget, Chancellor Jeremy Hunt also announced that the freeze to alcohol duty would end on August 1 and increase by inflation, at 10.1%. The increase will see duty rise by 44p on a bottle of wine, which when combined with VAT will mean consumers will pay an extra 53p, according to the Wine and Spirit Trade Association (WSTA). The new levy will mean the stronger the beer the more expensive it will be (Picture: Shutterstock / ESB Professional) Duty on 18% cream sherry will go up from £2.98 to £3.85, with VAT adding up to an increase of more than £1 a bottle, while a bottle of port will go up by more than £1.50. The total tax on a bottle of gin or vodka will go up by around 90p. The Chancellor is cutting the duty charged on draught pints across the UK by 11p in August in a major boost for pubs and draught beer drinkers, which Mr Sunak hailed as beneficial to 'thousands of businesses across the country'. The Prime Minister said: 'I want to support the drinks and hospitality industries that are helping to grow the economy, and the consumers who enjoy the end result. 'Not only will today's changes mean that that the price of your pint in the pub is protected, but it will also benefit thousands of businesses across the country. 'W){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
New alcohol duty changes will come into place from today, the Prime Minister has announced.
Under new ‘common-sense’ principles, first set out by Rishi Sunak in 2021, when he was Chancellor, tax is now being levied according to a drink’s strength.
The new system aims to encourage drinkers to cut back by taxing all alcohol based on its strength, rather than the previous categories of wine, beer, spirits, and ciders.
Taxes on draught pints will not change, an additional measure designed to support pubs.