Alcohol duty sees hike

ALCOHOL duty rates will increase by 6% above inflation from midnight on Sunday, Chancellor Alastair Darling announced in today's Budget.

The price of a bottle of whisky is set to rise by 55p following the first increase in duty on spirits for more than a decade.

Beer will rise by 4p a pint, cider 3p a litre and wine 14p a bottle.

Mr Darling also said that alcohol duties would increase by 2% above the rate of inflation in each of the next four years.

Gavin Hewitt, chief executive of the Scotch Whisky Association, said distillers were “astonished” by the chancellor's announcement.

Mr Hewitt claimed it worsened the “duty discrimination” against Scotch whisky.

He said: “A tax rise is a blow to international competitiveness when the industry has been investing significantly to meet growing global demand for Scotch whisky,” he said.

“It sets a damaging precedent that export markets may follow.”

Although health professionals welcomed the announcements, they said it would not stop binge drinking.