As expected, Alistair Darling, chancellor, increased taxes on alcohol and tobacco in an attempt to fund the government’s fight against poverty and address concerns about binge drinking.
As expected, Alistair Darling, chancellor, increased taxes on alcohol and tobacco in an attempt to fund the government’s fight against poverty and address concerns about binge drinking.
The rate of alcohol duty will increase from midnight on Sunday to 6 per cent above inflation. Beer will rise by 4p a pint, cider by 3p a litre and wine duty will increase by 14p a bottle.
The chancellor ended a decade-long freeze on duty on spirits, with a rise of 55p a bottle.
Alcohol duties will increase by 2 per cent above the rate of inflation in each of the next four years.
From 6pm on Wednesday the duty on tobacco will rise, adding 11p to the price of a packet of 20 Cigarettes and 4p to the price of five cigars.
Mr Darling has in the past said action is needed on the price and availability of alcohol , which has become More affordable as incomes have risen. However, he conceded that higher taxation alone cannot stop binge drinking.
Sir George Alberti, the Department of Health’s accidents and emergencies adviser, has made an argument for higher duties on alcohol, arguing that hospitals are overwhelmed by the casualties of excessive late night drinking.
Mr Darling said he was continuing the 5 per cent reduced rate of VAT on smoking cessation products beyond June 30 this year.