Budget: Beer duty to rise again, fuel duty falls

By Becky Paskin

- Last updated on GMT

Related tags: Cent increase, Tax

Budget: The beer duty rise is another blow to the pub industry
Budget: The beer duty rise is another blow to the pub industry
The price of a pint of beer is set to rise by 10p, after Chancellor George Osborne stuck to plans to increase duty to 7.5 per cent in today’s budget.

The beer tax escalator, set in place by the Labour government, increases duty on beer at 2 per cent above inflation, which is currently at 5.5 per cent.

The rise is seen as a further blow to the pub industry that, along with the January VAT increase to 20 per cent, has seen the biggest tax increase on beer in a single year.

In line with the Chancellor’s previous announcement in November, the Treasury will continue with plans to increase duty on beers over 7.5 per cent abv by 25 per cent and halve duty on beers under 2.8 per cent abv.

The changes will take place as of midnight on Sunday 27 March.

Food prices

Other changes in the budget include the introduction of a Fair Fuel Stabiliser, which will raise an extra £2bn from fuel companies to subsidise the elimination of the fuel tax escalator, which was due to increase tax on petrol by 5p a litre.

The Treasury will also cut fuel prices by 1p a litre at 6pm tonight.

The move will no doubt have a steadying effect on the increasing cost of food, in terms of production and supply.

Other measures included in the budget are:

· Consultation to be launched on plans to merge income tax and National Insurance

· Increase in personal allowance tax threshold from £7,475 to £8,105.

· Additional funding for 40,000 new apprenticeships for young, unemployed people

· The introduction of 21 new “Enterprise Zones” in England

· A 15 per cent increase in the amount of credit available to small businesses

· Council planning departments to prioritise jobs and growth by cutting back on cumbersome planning regulations

· Corporation tax to reduce by 2 per cent from 1 April, and then a further 1 per cent for the next three years

· Income Tax relief on the Enterprise Investment Scheme will increase from 20 per cent to 30 per cent in April 2011

Related topics: Legislation, Restaurants, Hotels, Pubs & Bars

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2 comments

Community?

Posted by Bruce Walton,

I thought that this government were supposed to be keen on ‘community’ where do they think that the ‘community’ get to meet?

Pubs are generally the heart of the local community nowadays as we encourage traditional drinkers but also families to come and enjoy themselves. We typically offer a place for the community groups to meet and try to evolve to reflect our neighbourhoods. We raise enormous amounts of money for the charities that are being asked to take up the slack that the cuts create. So well run pubs are not only small businesses but also very much a service to their community so why are we being punished again? We are unpaid tax collectors on a huge scale and now we have to ask our customers to pay even more for the same product and service, where is the justice in this?

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Beer prices

Posted by SUE MILLARD,

How much harder does the government want to hit the nail in the coffin of pub owners? Drinkers are leaving pubs in their droves and these are not binge drinkers, but professional people who like to socialise over a glass of beer. Thanks very much for nothing Chancellor.

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