Perhaps the only good thing announced in the mini-budget
The Conservatives have scrapped the proposed increases in alcohol duty 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.
The duty freeze will come into place from February 2023.
Kwarteng said he had “listened to industry concerns” over planned rises in alcohol duty.
The Treasury said that the tax cut is worth £600m and will “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.”
They added that scrapping the planned increases in duty on alcohol will “help the hospitality industry bounce back.”
https://twitter.com/hmtreasury/status/1573234455959183360?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet
Accountancy firm Moore UK agreed via the Mirror that the move “will help boost the hospitality industry.”
Elsewhere in the mini-Budget, the Chancellor announced that the cap on bankers’ bonuses will be scrapped, along with the planned rise in corporation tax.
Chancellor Kwasi Kwarteng announces government will scrap additional rate of income tax – which will benefit those on the highest salaries
The basic rate of income tax will also be cut in April 2023 – "one year early"https://t.co/mHU24RZ5VF pic.twitter.com/kWqo0diGUo
— BBC Politics (@BBCPolitics) September 23, 2022
The basic rate of income tax has also been cut to 19p from April 2023 and the 45% top rate of tax for higher earners will be abolished.
Labour’s shadow chancellor Rachel Reeves labelled the budget as a “menu without prices” and an “admission of 12 years of economic failure.”
She accused the Conservative Party of “actively working against” ordinary families, attacking the Tories for shielding windfall profits of energy giants and shift the costs of its energy plan onto borrowing.
Related links:
- George Osborne’s austerity measures were based on a ‘spreadsheet error’
- Liz Truss admits her tax cuts will benefit the rich more than the poor – and she’s ok with it
- Liz Truss ‘preparing to scrap sugar tax’ on soft drinks
