Budget 2013: Beer duty sees small drop but wine and spirit duty esacalator remains

As of Sunday the price of a pint will be 1p less, ending the beer duty escalator that would have added 3p to a pint, as announced in the 2013 Budget. However the 2% above inflation duty rise continues for other drinks, adding 10p to a bottle of wine and 53p to a litre bottle of spirits. 

Pub and beer groups heralded the news as a welcome boost to the flagging pub industry, which has seen 10,000 pubs closed in the last 10 years. Last year the Campaign for Real Ale (CAMRA) led on a petition calling for a freeze on duty, which achieved over 100,000k signatures and a parliamentary debate.

However other sections of the industry including Diageo and the Wine and Spirit Trade Association (WTSA) were heavily critical of the singling out of beer and questioned the legality under EU law.

No news came on Minimum Unit Pricing (MUP), a Government decision now much anticipated after further speculation that the Prime Minister may give in to pressure to back down. He has however vowed to "tackle" the issue of cheap alcohol. The IFS have consistently argued for increased taxation as preferable to MUP, though some health academics argue both are required together. A VAT cut for pubs has also been argued.

See Budget 2013 alcohol duty comments and reports including:

• Is cheaper beer a sign of muddled thinking? BBC
• Cut in beer duty is welcome tonic for Britain's suffering pub - The Independent
• Cheers? Chancellor cuts beer duty but wine and spirits are still tapped - The Guardian