to rise by 5% above inflation from 18:00 today - the equivalent of 37p on a packet of cigarettes. No change to existing plans on alcohol duty - meaning the duty will rise 2% above the rate of inflation, putting more than 5p on the price of a pint."
Frankly, I don't think anyone is very surprised, but if the Coalition tries to claim they can't afford to cut beer duty, or at least freeze it, for financial reasons, then they will be lying, because even some in the Treasury are realising that increases on beer and cigarette duty are increasingly self-defeating and will raise little or nothing. Many people will simply spend the same money buying less, so no tax gain there; some may stop going out altogether. By making the smuggling of alcohol and cigarettes more profitable, the amount lost to the Treasury will continue to escalate, while giving our pubs an increasingly hard time, resulting in closed small businesses and lost jobs. None of this makes any economic sense.
Politicians whom I don't agree with are one thing; politicians who are incredibly stupid, as this lot are, are an insult to our intelligence. There are many more reasons to despise this budget, but I've kept within the remit of my blog here. Please sign the beer tax escalator petition to the right if you haven't done so already.
News of the booze
18 hours ago