In an address to the House of Commons on September 23, 2022, chancellor Kwasi Kwarteng revealed that the planned tax increase on beer, cider, spirits and wine has been cancelled.

Many of the changes to tax announced as part of Kwasi’s ‘Growth Plan’ seek to “make the UK one of the most competitive economies in the world”.

During his address to the house the chancellor said that he did not wish to raise alcohol prices “at this difficult time.”

The former chancellor, Rishi Sunak, had announced in February 2022 that drinks would be taxed dependent on their alcohol strength. Changes to the tax would have come into effect on February 1, 2023.

Kwasi Kwarteng’s plans removes this increase entirely saying that he had "listened to industry concerns" and pledged “18 month transitional measure” for wine duty.

There are currently 15 different tax rated for alcohol based on a variety of factors including type, strength and production method. But the new system will be reduced to six rates.

According to The Independent the changes will create “£600m in tax cuts, with the consumer saving 7p on beer, 4p on a pint of cider, 3p on a bottle of wine and £1.35 on a bottle of spirits.”

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