Chancellor announces 'historic' change to booze taxes with 3p taken off price of pint

27 October 2021, 13:57 | Updated: 27 October 2021, 14:29

Taxes on some types of booze have been announced by the chancellor in a major overhaul of the UK's alcohol duty system.

Rishi Sunak told MPs in his Budget speech that a planned increase in duty on spirits such as Scotch whisky, wine, cider and beer will be cancelled from midnight, representing a tax cut worth £3 billion.

3p will be taken off a pint of draught beer and sparkling wine will become cheaper.

READ MORE: Budget 2021: What were the key announcements?

Mr Sunak criticised the current system of alcohol taxes as outdated and too complicated, as he revealed a raft of changes.

"We are taking advantage of leaving the EU to announce the most radical simplification of alcohol duties for over 140 years," he said.

"We're taking five steps today to create a system that is simpler, fairer, and healthier."

The Treasury said it will slash the number of main duty rates from 15 to six as part of the sweeping changes.

The Chancellor said changes to duties will see taxes increase on some higher strength drinks, such as some red wine and "white ciders".

However, consumers of some lower strength products, such as rose, fruit ciders, liqueurs, and lower strength beers and wines, "will pay less", he said.