Booze duty will be frozen until August – here’s what it means for the cost of your pint or bottle of wine
BOOZE duty will be frozen until August in a major win for pubs and brewers, The Sun can reveal.
Hated alcohol levies were due to be hiked on February 1, but Chancellor Jeremy Hunt will delay that move for an extra six months until August 1.
Alcohol duty was due to rise by RPI inflation early next year – which would have seen a seven pence hit on a pint of beer, 38p on a bottle of wine and more than £1.30 hike to the price of a bottle of spirits.
Taxation of alcohol has been in chaos since September’s mini-Budget when short-lived Chancellor Kwasi Kwarteng announced a freeze on alcohol duty, only for Hunt to scrap it when he took over the Treasury in October.
Now he is due to announce he will delay the pain and set new duties on booze at next year’s Budget in a welcome U-turn.
The half year reprieve will be a major boost to the struggling hospitality industry who have been hammered this winter by strikes and soaring costs.
New analysis from the Labour Party today shows more than 70,000 venues have had to reduce their operating hours this winter due to the price of energy bills.
That represents almost a third of pubs, bars and hotels missing out on punters at the busiest time of year.
Shadow Business Secretary Jonathan Reynolds warned: “Hospitality firms having to reduce their hours in their most profitable season is testament of Government failure to tackle the cost of doing business crisis.”
Struggling firms are set to get extra bill help this week with energy support extended beyond March but it is unlikely to be as generous as current rates.
Energy bills are currently capped with taxpayer support at around half the market price – but that help is due to end on 20 March 2023.
Treasury insiders say while the replacement scheme will still support hard up businesses but will not see taxpayers foot the mega bill.
One said: “Be under no illusion, there will be help, but the jam will be spread pretty thin.”