The planned increases in duty for rates for beer, wine, cider spirits have all been cancelled as part of the mini-Budget plans announced today.
Chancellor Kwasi Kwarteng said that alcohol duty will freeze from next year, saving Brits 7p on a pint of beer.
Accountancy firm Moore UK responded by saying: "In a move that will help boost the hospitality industry, alcohol duty will be frozen from February 2023.
"On average, this will save the consumer 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine, & £1.35 on a bottle of spirits."
Follow all the latest developments in our Mini-Budget live blog here
The Chancellor said he had "listened to industry concerns" over planned rises in alcohol duty.
On announcing the freeze he said: "Our drive to modernise also extends to alcohol duties. I have listened to industry concerns about the ongoing reforms.
"I will therefore introduce an 18-month transitional measure for wine duty.
"I will also extend draught relief to cover smaller kegs of 20 litres and above, to help smaller breweries.
"And, at this difficult time, we are not going to let alcohol duty rates rise in line with RPI."
He finished: "So I can announce that the planned increases in the duty rates for beer, for cider, for wine, and for spirits will all be cancelled."
The alcohol industry reacted to the news with The Society of Independent Brewers tweeting its support of the plans and saying: "Great to see the Chancellor supporting small brewers today in his mini budget".
While British Beer & Pub Association CEO Emma McClarkin was also positive: “We welcome the Beer Duty Freeze and recommitment to draught discount & extension to 20L kegs for small brewers.
"We look forward to the continued reduction of taxation on Beer & Pub industry at the next Budget.”
But Scotch Whisky Association chief executive Mark Kent said that although the freeze will help the industry "further action will be needed to bring down the 70% tax burden on Scotch Whisky in the UK," which he said is one of the "highest in the world".
Today's Mini-Budget comes one day after the chancellor announced that the government will reverse a raise in National Insurance.
The rate will fall down from 13.25% to 12% - the level it was at before the Tory hike in April - at the beginning of November.
Elsewhere in the budget, stamp duty tax was cut with the limit raised to £250,000 or £425,000 for first-time buyers in what experts called a "hammer blow".
A proposed increase in corporation tax was also axed.
News of the government's plans today sent the pound plummeting to new 37-year low against the US dollar.
The sterling fell by 0.89% to 1.115 US dollars - a 17% drop against the US currency so far this year - and economists warned that Mr Kwarteng's attempts at tax cutting could further damage the pound.
