Philip Hammond froze duties on most alcohol today but announced a new crackdown on cheap ‘white ciders’ with higher taxes.
The Chancellor said he wanted to cut consumption of high-volume, low cost alcohol and said he would change the law to increase tax on them.
But other products such as beer, spirits and wine will not be increased – allowing the Chancellor to claim a bottle of single malt whisky will be £1.15 cheaper.
Tobacco taxes will continue to spiral, as an escalator of inflation – currently running at 3 per cent – plus 2 per cent will continue.
Philip Hammond froze duties on most alcohol today but announced a new crackdown on cheap ‘white ciders’ with higher taxes
The Chancellor announced: ‘The tobacco duty escalator will continue at inflation plus 2 per cent with an additional 1 per cent duty on hand rolling tobacco this year and minimum excise duty on cigarettes will also rise.
‘Excessive alcohol consumption by the most vulnerable people is all too often through cheap, high strength, low quality products – especially so-called white ciders.
‘I want to pay tribute to the campaign led by Congleton MP Fiona Bruce on this issue.
‘Following our recent consultation we will legislate to increase duty on these products from 2019.
‘But recognising the pressure on household budgets and backing our Great British pubs duties on other ciders, wines, spirits and on beer will be frozen this will mean a bottle of whisky will be £1.15 less in 2018.’
He joked: ‘Merry Christmas Mr Deputy Speaker!’
Products such as beer, spirits and wine will not be increased – allowing the Chancellor to claim a bottle of single malt whisky will be £1.15 cheaper
The changes came as Mr Hammond vowed to spend an extra £3billion preparing Britain for Brexit today as he delivered a make-or-break Budget – but had to admit that growth forecasts had been slashed.
Unveiling the crucial package in the Commons, the Chancellor signalled a loosening of the purse-strings after years of austerity, and called for a huge effort to create ‘an outward-looking free-trading nation’, saying he wants to harness the ‘opportunities’ of Brexit.
Some £2.8billion more is being pumped into the NHS, with £340million available immediately – but the figure is lower than had been asked for. Another £1.5billion has been earmarked to head off anger over the new Universal Credit benefit – cutting the waiting time for getting the handouts to five weeks.
But he also revealed that the independent fiscal watchdog had dramatically slashed growth estimates for the coming years – including from 2 per cent to 1.5 per cent this year.