Budget 2010 – Alcohol Duty
The Chancellor has announced further increases in the duty on alcoholic beverages including spirits, beer, cider and wine. The duty rates for most alcoholic drinks will increase by 2% above inflation from 29 March 2010.
In a surprise move the duty on strong ciders will increase by 10% above inflation. The Government will introduce new legislative power to amend the definition of cider. The Chancellor said that this move will amend “a long-standing anomaly which has meant cider has been under-taxed in comparison to other alcoholic drinks”. It is unlikely that cider drinkers will agree with this statement.
The relevant budget notice provides some examples of the impact of the changes on retail prices for typical alcoholic drinks:
- 36 pence on a 70cl bottle of spirits @ 37.5 per cent abv
- 2 pence on a pint of beer
- 5 pence on a litre of still cider
- 9 pence on a 75cl bottle of sparkling cider
- 10 pence on a 75cl bottle of wine or made-wine
- 12 pence on a 75cl bottle of sparkling wine.