UK Budget at a Glance
25 March 2010
Following Chancellor Alistair Darling�s announcement of the UK budget yesterday, it is already clear that Cider will suffer a hefty tax hike. Here is a rundown of the key points from the budget from the perspective of the Licensed Trade;
� Alcohol duty tax to rise by 2% above inflation from midnight on Sunday (28 March). Inflation stands at 3%, according to the Government, so that means a 5% tax rise in real terms. � Cider tax to rise by 10% above inflation (13% in real terms), to correct a "long standing anomaly" to tax on other drinks. � From September, the definition of cider will also be changed so that strong cider is "taxed more appropriately", said the Chancellor, without giving further details. � Alcoholic drinks tax will also rise by 2% above inflation each year for the next two years, as originally set out in the Government's "duty tax escalator". � Duty tax will also rise at the same rate for a further two years, from 2013. � Valued added tax to remain at 17.5%. � Consumer and business confidence remains fragile, but economy is moving in the right direction, said Darling at the beginning of his speech.