Nation’s spirits lifted for just the second time in 20 years

RISHI Sunak scrapped a planned increase in duty on beer and spirits, as pubs and bars braced for more drinkers staying at home due to coronavirus.

The Chancellor also said he would freeze the rates on cider, wine and other alcoholic beverages as part of a series of measures to help Britain’s under-pressure high streets.

The duty freeze is only the second time in almost two decades that the Treasury has avoided using drinking as a way to boost its coffers.

Mr Sunak told the Commons: ‘Pubs are at the centre of community life but too many have closed over the past decade.

‘For only the second time in almost 20 years, that is every single one of our alcohol duties frozen.’

The hospitality trade welcomed the decision, but others said health implications were being ignored.

Chief executive of the Wine and Spirit Trade Association, Miles Beale, said the decision would be good for business and consumers. He said: ‘While he has not cut duty, it is reassuring to see that Rishi Sunak has taken steps to address the UK’s excessively high duty rates.

‘He has shown he is in touch with British consumers, from all walks of life, who want to enjoy a drink without getting stung by further tax hikes.

‘In particular the UK’s 33 million wine lovers, a large proportion whom are women, are expressing a sigh of relief after they were singled out for a duty rise at the last Budget.’

But Franco Sassi, professor of international health policy and economics at Imperial College Business School, said: ‘Any health concerns are ignored.

‘The extra healthcare expenditure on alcohol-related conditions arising from the freeze will be in the order of tens of millions of pounds each year. Yet, it was underlined with pride that all alcohol duties have been frozen “for only the second time in almost 20 years”.’