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Daily Mirror
Daily Mirror
Business
Sam Barker

Price of beer, cider, wine and spirits to RISE after Chancellor scraps alcohol duty freeze

Brits face paying more for booze as Chancellor Jeremy Hunt scrapped a freeze on alcohol duty.

The changes are set to mean Brits will pay around 7p more, on average, for a pint of beer.

A pint of cider will go up around 4p, a bottle of wine 38p and a bottle of spirits £1.35.

Booze duty was due to be frozen for a year under plans announced by former Chancellor Kwasi Kwarteng in his Mini-Budget on September 23.

Mr Kwarteng's original plan was to freeze tax on booze from February 2023.

But the disastrous Mini-Budget led to financial chaos - and My Kwarteng being sacked.

Today Mr Hunt unravelled a number of Mr Kwarteng's plans, including the freeze to alcohol duty.

Before Mr Kwarteng stepped in, alcohol tax was due to go up by the retail prices index level of inflation - currently 9.9%.

Jeremy Hunt has been scrapping tax cuts brought in by Kwasi Kwarteng (Getty Images/Image Source)

Today Mr Hunt said: “We will no longer be proceeding with…the freeze on alcohol duty rates".

Mr Kwarteng originally wanted to freeze alcohol tax due to worries from the booze industry.

The former Chancellor said he had "listened to industry concerns" over planned rises in the tax paid on booze, which is passed on to consumers.

But alcohol is not the only area being shaken up by the new Chancellor.

Billions of pounds in energy bills help for millions will also be slashed in a colossal Budget U-turn that leaves Liz Truss's plans in tatters.

Jeremy Hunt junked the flagship Energy Price Guarantee beyond next April, in a surprise announcement in a bid to stabilise the markets.

Instead of average bills being capped at £2,500 a year for all households for two years, the help will only be universal for six months.

Only two major announcements from the mini-Budget three weeks ago - a cut to Stamp Duty and a cut to National Insurance from April - will still take effect.

It comes after ministers already junked a £19bn-a-year cut to corporation tax and U-turned on plans to remove the 45p top Income Tax rate for the wealthiest Brits.

Mr Hunt said put together the changes announced today will save the public purse £32billion a year.

Taxpayers will still pay less National Insurance (NI) from November 6 with a 1.25 percentage point cut still due to take place.

These were originally brought in by former Chancellor Rishi Sunak, Mr Kwarteng's predecessor.

From November 6, NI will be cut from 13.25% to 12%.

What is National Insurance?

NI is a tax on earnings, paid by both employed and self-employed workers.

This cash goes into a pot of money used to fund state benefits.

You pay NI if you’re 16 or over and are either an employee earning above £190 a week, or self-employed and making a profit of £6,725 or more a year.

Once you reach State Pension age, you no longer need to keep paying NI.

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