Chancellor Rishi Sunak announces the stronger the drink, the higher the tax – meaning beer’s about to get a lot cheaper
Prosecco, rose, draught beer and cider will become cheaper under new legislation announced in the 2022 budget.
Chancellor Rishi Sunak has announced a long-awaited alcohol duty reform that will scale tax based on a drink’s strength.
The announcement was met with cheers in the chamber, a policy Sunak has been able to “radically simplify” thanks to Brexit.
Sunak announced the “most radical simplification of alcohol duty” for over 100 years, a dramatic overhaul of the system that will mean there will be just six duty rates on alcohol.
The stronger the drink, the higher the rate.
This means some stronger wines or spirits will rise in price but lower-strength drinks like cider and draught beer will see a reduction.
Fruit cider fans will be pleased to learn Sunak is slashing duty in order to bring them in line with apple ciders.
Sunday brunch could get messier after the Chancellor confirmed he will end the “irrational duty premium” of 28 per cent on sparkling wines.
The Chancellor also announced a “small producer relief” which will include small cider makers for the first time.
Sunak later announced he would be helping “the home of British community life for centuries” – ie pubs – announcing a “draught relief”.
This announcement will cut duty by 5 per cent on draught beer and cider served from draught containers over 40 litres (essentially, barrels).
The Chancellor said: “That’s the biggest cut to cider duty since 1923. The biggest cut to fruit ciders in a generation. The biggest cut to beer duty for 50 years.”
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