CHEERS TO THAT

Budget 2020: Duty freezes on ALL alcohol for only second time in 20 years

GIN and tonic drinkers will be celebrating today after an increase in spirits duty was frozen.

Duty increases for beer, cider and wine will be scrapped as well - the first time a move of this scale has been announced in almost 20 years.

The price of a gin and tonic will stay the same after Chancellor Rishi Sunak announced a freeze in spirits dutyCredit: Getty - Contributor

The move was revealed today by Chancellor Rishi Sunak in the Budget 2020.

Mr Sunak said: "Pubs are at the centre of community life but too many have closed over the past decade.

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"For only the second time in almost 20 years that is every single one of our alcohol duties frozen."

Under previous policy, all alcohol prices would have risen in line with RPI inflation, which is currently forecast at 2.8 per cent.

This means a 750ml bottle of wine would have cost 6p more, and a 70cl bottle of gin would have increased by 23p, according to the Wine and Spirits Trade Association.

For beer drinkers, the average cost of a pint would have cost 1p more.

The Chancellor also announced additional support for pubs, including an increased business rates discount from £1,000 to £5,000 for this year.

Mr Sunak said the move would benefit 1,000 small boozers.

Generally speaking, the duty on spirits automatically goes up every Budget unless the Chancellor freezes or cuts it.

The Conservatives promised that the tax system will "support British drink producers" in their election manifesto last year.

A pledge to review alcohol duty rates was also mentioned in the Queen's speech in December.

The announcement from Mr Sunak comes after some 40 members of the UK Spirits Alliance, which represents whisky and gin makers, wrote a letter demanding action from the Chancellor.

Britain’s spirits are among the most highly taxed in the world with £3 in every £4 going to the Treasury.

There are currently more than 18,500 people employed in the spirits industry, according to a report by BiGGAR Economics.

The UK's booming gin and whiskey business has recently come under pressure after the US slapped 25 per cent tariffs on Scotch whisky.

Budget 2020 at a glance

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In more good news to come from the Budget, employees who receive the National Living Wage will see their salary increase to £10.50 an hour by 2024.

Measures are also being put in place that will allow millions of self-employed workers to get sick pay.

Stamp duty has been hiked by 2 per cent for overseas property buyers too.

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