RISHI Sunak was swamped by pubgoers after nipping for a post-Budget tipple – just hours after slashing booze costs.
The teetotal Chancellor headed for a swift non-alcoholic half after unveiling what he called the “most radical” revamp of drink duty in more than a century.
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Mr Sunak was all smiles as he was mobbed after dropping in to celebrate at Westminster watering hole The Two Chairmen.
Earlier at the Despatch Box, Mr Sunak announced the biggest shake-up to alcohol tax “for over 140 years” which will see beer and cider duty cut by five per cent.
It would mark the biggest cut on beer tax for 50 years and the “biggest cut to cider duty since 1923“, Mr Sunak said.
He branded the current tax system on alcohol “outdated, complex and full of historical anomalies”.
RISHI’S BOOZE CRUISE
A planned hike to duty on spirits, wine, cider and beer will be axed – with the “irrational” 28 per cent duty on premium sparkling wines like prosecco and fruit ciders cut.
The price of a pint will fall by 3p as a ‘draught relief’ is brought in – a 5 per cent cut to duty on draught beer and cider served from draught containers over 40 litres.
But some drinks – including red wine – could become more expensive under changes to come in from February, 2023.
Under the current system there are 15 bands of alcohol tax, with that number to be slashed to six.
Drinks will now be taxed according to their alcohol content.
It will bring an end to the so-called Girls Night Out tax, which sees wine and fizz subject to much higher rates of duty than beer.
Mr Sunak said the reforms were “progressive” and “much-needed”, and would mark the biggest shake-up to alcohol tax in decades.
Pubgoers will also be toasting the Chancellor today for announcing a five per cent lower duty rate on draught beer worth £62million
Emma McClarkin, chief executive of the British Beer and Pub Association
The Chancellor said the changes would be fairer and reflect how people drink today, and said Brexit had helped bring about the cut to booze tax.
Me Sunak told a packed Commons: “We are taking advantage of leaving the EU to announce the most radical simplification of alcohol duties for over 140 years.”
Under the changes, a bottle of 7.5% ABV Frosty Jack’s cider would cost 45p more tax and a can of 4.8% ABV Thatcher’s Gold cider would be subject to a penny more in duty.
Red wines, which tend to have a higher ABV than white or rose wines, will also pay more duty.
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A bottle of 13% ABV Hardy’s VR Merlot will pay 35p more tax and 13.5% ABV Campo Viejo Rioja 47p more.
The price of sherry and port is also set to climb under the revamped system.
But fizz fans are in for the biggest price fall, with a whopping 87p set to come off a bottle of Canti Prosecco.
Mr Sunak said that consumption of sparkling wines like prosecco had doubled and are no stronger than still wines, so should not be taxed differently.
“I’m going to end the irrational duty premium of 28% that they currently pay,” he added.
PROSECCO SLASHED
“Sparkling wines – wherever they are produced – will now pay the same duty as still wines of equivalent strength.”
Hospitality bosses have welcomed today’s Budget – and raised a glass to the Chancellor.
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “Pubs, brewers and beer drinkers will be toasting the Chancellor today for a range of business-boosting measures.
“Pub goers will also be toasting the Chancellor today for announcing a five per cent lower duty rate on draught beer worth £62million.
“This is great news for our local pubs and recognises the crucial role they play in our economy and society.
“However, the overall beer duty rate in the UK remains amongst the highest in Europe.”
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