Industry avoids further hikes in emergency Budget
The trade has welcomed the government's decision to freeze duty on alcohol in today's emergency Budget.
New chancellor George Osmond was expected to introduce further hikes to help reduce the nataional debt, but the industry's fears failed to materialise. The 10% above inflation increase on cider, announced in April's Budget, will also be reveresed by the end of the month. However, VAT will rise 2.5% to 20% in January 2011.
Wine & Spirit Trade Association chief executive Jeremy Beadles said:
"Today's announcement provides some relief for a sector that has faced substantial tax increases in recent years and I welcome the Chancellor's decision.
"Repeated tax hikes have produced less revenue for the Treasury and punished responsible drinkers, while failing to tackle the problem of binge-drinking."