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Government Announces Beer And Prosecco Prices Are Set To Fall

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Government Announces Beer And Prosecco Prices Are Set To Fall

Rishi Sunak has announced the UK's 'biggest cut to beer duty in 50 years'.

Sunak has been announcing his Budget in the House of Commons. Credit: Alamy
Sunak has been announcing his Budget in the House of Commons. Credit: Alamy

The Chancellor has been announcing his Budget in the House of Commons today (27 October) and has shared an optimistic vision of a post-Covid economy.

Among his announcements, Sunak revealed that a draught relief will apply a lower rate of duty on draught beer and cider, cutting the tax by 5 percent on drinks served from draught containers over 40 litres and bringing the price of a pint down by 3p.

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Teetotaller Sunak said: "This is not temporary, it's long term investment in British pubs of £100 million a year, and a permanent cut in the cost of a pint of 3p."

The Chancellor said he was 'radically' simplifying alcohol duty by introducing a system designed around the principle of 'the stronger the drink, the higher the rate', aimed at tackling problem drinking.

The number of duty rates will be cut from 15 to six, ending the 'irrational' 28 percent duty premium on sparkling wines and fruit ciders.

Rates will also be lowered for craft producers.

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Much of the Budget has already been revealed over recent days, much to the annoyance of Commons Speaker Sir Lindsay Hoyle, who suggested ministers should resign for dishing out details to the media before MPs had heard the speech.

The Government already confirmed that Sunak would announce a rise of the so-called 'national living wage' to £9.50 from April - up more than 6 percent, increasing by 59p per hour for those aged 23 and over - and the end of the year-long pay freeze he imposed on public sector workers.

Rising wages come against a backdrop of household income pressures.

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National insurance contributions for workers are being increased by 1.25 percent from April to help pay for the NHS and social care, while Sunak ended the £20-a-week Universal Credit coronavirus uplift earlier this month.

A further £5.9 billion in capital funding will be designated to help the NHS clear the backlog created by Covid-19.

The Treasury has also pledged green investment and policies to take advantage of post-Brexit freedoms and has touted nearly £7 billion of funding to overhaul local transport.

Featured Image Credit: Alamy

Topics: UK News, rishi sunak, economy, Politics

Jake Massey
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