Budget 2021: Duty cut on sparkling wine, draught beer and cider

Taxes on sparkling wine, draught beer and cider are to be cut, but will rise for stronger drinks such as red wine following a shake-up of alcohol duty. The new system, due to start in 2023, will mean higher duty for stronger alcohol, the chancellor said. The duty premium on sparkling wines will end and the duty on draught beer and cider served in pubs will be cut. In relation to sparkling wines, Mr Sunak said: "I'm going to end the irrational duty premium of 28% that they currently pay. Sparkling wines - wherever they are produced - will now pay the same duty as still wines of equivalent strength." In a move to help struggling pubs, Mr Sunak announced a new lower rate of duty for draught drinks, which he said would cut the cost of a pint by about three pence.

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