BREXIT – It is Britain’s turn to present its post-Covid and post-Brexit budget plans. In front of the British Parliament, Chancellor Rishi Sunak unveiled the budget for the coming years on Wednesday 27 October. Among the announced aid is a reduction in taxes on draft beer.
“I can declare today a ‘relief of pressure’,” he declared under the regular cries of satisfaction of British parliamentarians, As you can see in the video at the top of the article. This would induce a lower tax rate on draft beer and cider. “
There will be a 5% reduction in tax on beer and draft cider. “This is the biggest decline in cider since 1923,” said Rishi Sunak. The reduction will apply to beer and cider served in casks or barrels of more than 40 liters in pubs that are still recovering from the pandemic.
Simplify Liquor Taxes
The measure is part of a larger plan to simplify alcohol taxes, moving towards a system according to which “the stronger the drink, the higher the tax”. Strong spirits would be taxed higher, but lighter drinks, such as rosé wine, would benefit from lower rates.
These measures will help “end the era of cheap, highly concentrated drinks that harm public health,” Rishi Sunak said, adding that reform was “only possible because we left the European Union”.
UK pub stocks jumped just after Rishi Sunak’s speech. Shares of JD Weatherspoon were up 5%. Marston shares rose 6%. Mitchell & Butler rose 4%, while Young rose 1%.
A few hours later, British Prime Minister Boris Johnson and Rishi Sunak visited a brewery in London.
Stronger than expected growth in 2021
The British growth forecast for 2021 is stronger than expected, but has been revised downwards for 2022. The growth forecast for 2021 has been raised to 6.5% against the earlier 4%. GDP growth in the country is expected to slow to 6% in 2022, revised down from the previous estimate of 7.3% by the OBR.
The minister argued that excluding the effects of inflation, total government spending would increase by 150 billion per year by fiscal year 2024–2025, according to him “the largest increase in government spending of any legislature in this century”.
fuel tax canceled
The United Kingdom is navigating, without forgetting the resurgence of Covid-19 cases, amid a post-containment recovery, energy crisis, accelerating inflation and the climate emergency, about which the minister warned of “difficult months ahead”.
“With fuel prices at their highest level in eight years, I am unwilling to put pressure on families and small businesses,” he said in particular, before announcing that a planned increase in the tax on fuel would be canceled Went.
The government had already announced a £500 million fund to help underprivileged families pay bills for electricity, heating and food this winter, but the measure followed a fall in the social minimum.
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