Budget 2021: Rishi Sunak announces cut to alcohol tax

Rishi Sunak has announced a cut to alcohol tax as he unveiled a new “draught relief” policy which will see beer duty reduced by five per cent.

The finance minister said “the most radical simplification of alcohol duties for more than 150 years” is possible because of Brexit which will make for a healthier Britain.

The new tax will also provide “small innovative craft producers” a new relief making drinks under 8.5 per cent ABV and give sparkling wines a lose of 28 per cent duty premium, bringing them in line with still wines.