Wine and spirit drinkers handed major blow in Budget but beer fans get boost

The price of wine and spirits is set to rise as alcohol duty is hiked in the Budget by the Labour Party Chancellor - but pints in pubs are set to get cheaper. Rachel Reeves has announced she will be cutting the duty on draught beer cut by 1.7 per cent.

The Chancellor made the announcement in her Budget in the Commons saying it would lead to a "penny off the pints at the pubs." Alcohol duty rates on non-draught products will increase in line with RPI from February next year.

The Chancellor told the Commons: “I can confirm that alcohol duty rates on non-draught products will increase in line with RPI from February next year, but nearly two-thirds of alcoholic drinks sold in pubs are served on draught. So today, instead of uprating these products in line with inflation, I am cutting draught duty by 1.7 per cent, which means a penny off a pint in the pub."

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Meanwhile, Reeves confirmed the retail, hospitality and leisure industry will receive 40 per cent relief on business rates from 2025/26. The Chancellor told the Commons: "Let me turn now to our high street businesses. I know that for them, a major source of concern is business rates.

"From 2026-27, we intend to introduce two permanently lower tax rates for retail, hospitality and leisure properties, which make up the backbone of high streets across the country, and it is our intention that is paid for by a higher multiplier for the most valuable properties."

She continued: "But the previous government created a cliff-edge next year, as temporary relief ends, so I will today provide 40 per cent relief on business rates for the retail, hospitality and leisure industry in 2025-26, up to a cap of £110,000 per business. Alongside this, the small business tax multiplier will be frozen next year."