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Finance Bill

Clause 9 increases alcohol duty rates charged on beer, wine and spirits by 2 per cent. above inflation, and on cider by 10 per cent. above inflation, with effect from 29 March. Together with VAT, these increases are equivalent to 2p on a pint of beer, 5p on a litre of cider, 10p on a bottle of wine and 36p on a bottle of spirits. As the Exchequer Secretary to the Treasury and I have explained, in order to ensure the swift passage of the Bill through the wash-up, I have tabled amendments 1, 2 and 3 to this clause. The amendments will reduce the rates of duty on cider from 30 June this year to a level consistent with a 2 per cent. above-inflation increase, in line with the increases for other alcoholic drinks. The amendments will cost the Exchequer up to £15 million a year, and will undermine our intention of bringing the rates of cider duty more into line with those for other alcoholic drinks. We will therefore legislate to confirm the originally planned increases in a second Finance Bill, just after the election.