Alcohol duty to be frozen for further six monthson December 19, 2022 at 5:44 pm

The government will extend a freeze on alcohol duty for six months.

Chancellor Jeremy Hunt had said in his Autumn Statement that prices would go up in February, reversing a decision made by his predecessor Kwasi Kwarteng.

But it is understood the Treasury will now freeze the duty until August when a new system for calculating taxes on alcohol is also due to come into force.

Lifting the freeze would have added 7p on a pint of beer and 38p on a bottle of wine.

Mr Kwarteng had originally announced the freeze during his short time as chancellor in September, saying he had “listened to industry concerns” over planned rises in the tax during a time when costs of living are rising at record rates.

But after Mr Hunt said the duty would rise in line with retail prices index (RPI) inflation from February, industry leaders were disappointed.

The Scotch Whisky Association said many distillers were “furious” at the move that it said would amount to an average increase of 12% in price, or £1.35p to the average bottle of whisky.

The duty paid on alcohol is revalued each year to keep pace with inflation – though it has been either cut or frozen in every budget since 2013.