Yahoo Finance Jeremy Hunt announces alcohol tax freeze ahead of Christmas party season
The government set out plans to freeze alcohol duty on Wednesday until next August, as chancellor of the exchequer Jeremy Hunt laid out a raft of policies in his autumn statement.
Hunt confirmed rhe "Brexit pubs guarantee" which means that duty on a pint is always lower than in the shops.
The freeze means that there will be no increase in the pice of beer, cider, wine or spirits until summer next year.
Alongside this policy the Chancellor increased tax on hand rolling tobacco by 10%.
Read more: All you need to know about the autumn statement
The news comes after trade bodies observed falling sales for drinks in the UK. The Wine and Spirit Trade Association (WSTA) found spirits sales have dropped by a fifth (approximately 20%) over the last month as people's finances tighten amid high inflation. Wine has also seen a double-digit decline during the same period.
Read more: What the autumn statement means for your finances
The decline followed an alcohol duty hike introduced at the beginning of August this year, which represented the steepest rise in almost 50 years. The shift meant that alcohol is now taxed by strength.
As inflation has eased, the price of wine and sprits have seen significant hikes in the last three months.
Read more: National insurance rate to be slashed by 2%, Jeremy Hunt announces
According to data from the Office of National Statistics (ONS), the average price of a bottle of vodka in September this year was £16.80 – 14% more than the same month in 2022. An average bottle of gin was priced at £17.01, a 10% increase on 2022.
Watch: Jeremy Hunt hopes Autumn Statement will make 'really big difference'
