June Budget – Alcohol, tobacco and fuel duties
No increases in duties on alcohol, tobacco or fuel were announced in the Budget.
However, the Chancellor confirmed that the coalition Government will examine the possibility of targeting alcohol duty at the products most associated with binge drinking and underage consumption. The Government is expected to report back on possible new taxation measures in the autumn.
The Chancellor also announced that the 10% above inflation increase in Cider Duty announced in the previous Government’s March Budget is to be cancelled with effect from 30 June 2010. The cider duty increases will match those of other alcohol products i.e. a 2% above inflation increase in excise duty.
The Chancellor commented that ‘the reduction will come into effect at the end of this month – just in time to celebrate England’s progress to the quarter finals, or else to drown our sorrows’.