Budget 2014: Good news for drinkers

THERE are more cheers for the pub industry this afternoon with a penny off a pint for the second year running.

The good news for drinkers continued with a freeze on duty for spirits and the Government’s alcohol tax escalator is to be scrapped.

Chancellor George Osborne said: “Pubs saved. Jobs created. A penny off a pint for the second year running.”

Simon Theakston, executive director of brewery T&R Theakston, said the reduction is a massive boost to the industry and one that will have a positive impact on British beer and pubs in the years to come.

“I am confident this reduction will see the industry increase its economic contribution, both locally and nationally, and help ensure the long-term success of the British brewing industry and our much-loved pubs and clubs.”

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The Chancellor confirmed that the fuel duty rise planned for September will not take place and petrol will be 20p lower per litre than it would have been.

Turning to gambling, duty on fixed odds betting terminals will be raised to 25% and the Chancellor is to cut bingo duty from 20% to 10% to protect jobs and protect communities, he said.

The Chancellor said government will also extend the horserace betting levy to bookmakers who are based offshore. He said they will also look at wider levy reform and at introducing a ‘racing right’ to support the sport.

However, the price of cigarettes will go up.

Osborne said: “Tobacco duty has been rising by 2% above inflation and will do so again today.

“This escalator was due to end next year – but there are no sound health reasons to end it, so it will be extended for the rest of the next Parliament.”

Describing Scottish Whisky as a “huge British success story”, Osborne said to support that industry, instead of raising duties on whisky and other spirits, he’s freezing them. 

And with some cider makers in the West Country hit hard by the recent weather, the duty on ordinary cider is being frozen too.