Freeze on beer duty . . . but not for wine

PUBLICANS said they would raise a glass to the Chancellor last night after he froze duty on beer, cider and spirits.

The freeze amounts to a saving of 2p on a pint of beer, 1p on a pint of cider and 30p on a bottle of scotch or gin. The tax, will, however, be increased for wine – the most lucrative alcoholic drink for the Treasury.

Mr Hammond confirmed that last year’s duty freeze would remain for beer and spirits including scotch – a measure that was lobbied for by Tories north of the border.

The Chancellor told the Commons that the duty freeze meant we can ‘all afford to raise a wee dram to Ruth Davidson and her new arrival’ – a reference to the recent birth of the Scottish Tory leader’s new son, Finn.

Brigid Simmonds, of the British Beer & Pub Association, said: ‘Pub-goers across the UK will be toasting the Chancellor. This early Christmas present will save brewers, pubs and pubgoers £110million and secure upwards of 3,000 jobs that would have been lost had beer duty gone up.’

A spokesman for Britain’s Beer Alliance added: ‘It shows the Government recognises the social, cultural and economic importance of pubs.’

The Wine and Spirits Trade Association estimated that the duty rise by inflation imposed on wine would raise the price of most bottles by 7p, with 9p added to sparkling and fortified wine.

Chief executive Miles Beale said wine had been the most lucrative alcoholic drink for the Treasury since it overtook beer in 2012, adding: ‘The UK is the world’s biggest wine trading nation and, as such, deserves the Government’s support, not punishment.

Super-strength, cut-price white cider was also kept out of the freeze. Instead, it will be hit by a new rate of tax next October.

Mr Hammond announced in last year’s Budget that he would increase duties on the drinks from 2019 to target ‘excessive consumption by the most vulnerable people’.

Duty on tobacco will continue to rise at two percentage points above inflation, with an extra one percentage point added to hand-rolling tobacco.