Beer tax frozen despite hopes of a cut: Chancellor to say £4bn hole in public finances has prevented him from reducing the tax again
- George Osborne will today say there will be no increase in beer duty
- The Chancellor has cut beer duty by 1p duty cut in his last three Budgets
- But £4billion hole in the public finances has prevented him cutting again
- For the latest on the Budget 2016 visit www.dailymail.co.uk/budget
Beer taxes will be frozen in today’s Budget, the Mail can reveal.
George Osborne will say there will be no increase in beer duty. The Chancellor has cut beer duty by 1p duty cut in his last three Budgets.
But the £4billion hole in the public finances has prevented him cutting again.
George Osborne will say there will be no increase in beer duty. The Chancellor has cut beer duty by 1p duty cut in his last three Budgets. But the £4billion hole in the public finances has prevented him cutting again
The freeze still means an effective cut because duty has not gone up with inflation.
Drinkers already pay 52p per pint in tax, one of the highest rates in Europe.
Business Secretary Sajid Javid raised hopes of another cut in beer duty in the House of Commons yesterday.
He said there are ‘lots of reasons to cut beer duty’ when challenged about the Government’s support for the beer industry.
Conservative MP Andrew Griffiths asked if Mr Javid could have a word his close ally Mr Osborne.
The Burton MP, a champion of the beer and pub industry, said: ‘Given your support for the brewery industry when you were in the Treasury, being the man who led the call for the duty cut, will he outline what his department is doing to support the beer and pub industry and will he pick up the phone and ask the Chancellor for another cut?’
Drinkers already pay 52p per pint in tax, one of the highest rates in Europe. Business Secretary Sajid Javid (pictured) raised hopes of another cut in beer duty in the House of Commons yesterday
Mr Javid replied: ‘I’ve heard him loud and clear on a further cut. I know he’s made his representations to the Chancellor.’
‘I do recall when I was the economic secretary I did get a beer named after me, Sajid’s Choice, which was a fine brew, so there is a lot of reasons to cut beer duty.’
Other so-called sin taxes are expected to rise, such as duty on a pack of cigarettes.
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