Victory for drinkers... (but not if your tipple is wine!)
PUB bosses were last night raising a glass to Philip Hammond after duty on beer, cider and spirits was frozen.
The move will save people 2p on a pint of beer, 1p on a pint of cider and 30p on a bottle of whisky or gin – when compared to duty rising with inflation.
The move will protect 3,000 jobs and save brewers, pubs and pub-goers £110million, industry leaders said.
But the duty on wine will increase in line with retail price index inflation, costing an extra 7p on a bottle of wine, 9p on sparkling wine and 9p on fortified wine.
The Wine and Spirit Trade Association said the “hammer blow” would cost consumers an extra £90million a year.
Duty on tobacco products will continue to rise at two percentage points above RPI, putting around 33p on a packet of cigarettes.
The tax will also see around 17p added to the price of a pack of 10 cigars.
Smokers advocacy group Forest said the hikes were “grossly unfair”.
Director Simon Clark said: “The people hardest hit are those who can least afford it.
“As well as forcing some consumers further into poverty it will inevitably encourage more people to buy tobacco on the black market or in countries where tobacco is significantly cheaper.
“This will hit legitimate retailers and the Government will lose much needed revenue, so no one wins apart from criminal gangs and illicit traders.”
Mr Hammond said: “I will be freezing duty on beer and cider for the next year, keeping the cost of beer down for the patrons of the great British pub.
“And in response to concerted lobbying from my Scottish Conservative colleagues, I will also freeze duty on spirits so we can all afford to raise a wee dram to [Scottish Tory leader] Ruth Davidson on the arrival of her baby.”
Brigid Simmonds, chief executive of the British Beer & Pub Association, said: “Pub-goers across the UK will be toasting the Chancellor tonight following his decision to freeze beer duty.
“This early Christmas present will save brewers, pubs and pub-goers £110million and secure upwards of 3,000 jobs that would have been lost had duty gone up.
“Pubs are so important to their local communities and 82 per cent of the beer we drink here is brewed in the UK.”