Budget 2011: Tobacco and alcohol duties increase

The previously announced alcohol duty rise will go ahead with the tax increasing by 2% above inflation as of midnight on Sunday.

The hike was originally put in place by the previous government.

Meanwhile, tobacco duty rates will also rise by 2% above inflation, effective as of 6pm tonight.

Chancellor George Osborne also pledged to reform the tobacco duty regime to narrow the gap between the lower-cost brands and the others.

One step will be to increase duty on hand-rolling tobacco by a further 10%.

In addition, from 1 October 2011, the government will introduce an additional duty on high-strength beers, and a reduced rate of duty on lower-strength beers to encourage their production and consumption.

The government said this "will reduce the health and social harms resulting from problem drinking, and is designed to avoid unfairly penalising responsible drinkers".

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With the amount of public houses shutting their doors permanently on a daily basis, does the chancellor really believe that increasing alcohol by 5 pence wont have an impact on employment. Yes, high strength beers should be taxed and from Sunday, not October but normal strength beers should be left alone.

My understanding as a landlord is that RPI currently stands at 5.5% and the duty increase is 2% ontop of that a total of 7.5% which means that the lowest increase will surely be 7.5p.
This will put yet another nail in our coffin, not too many left to go in now!

Previous comment assumes a pint is £1.00 !!!! The correct amount that a pint will have to rise is 30p - 35p a pint.. The government sites are saying that a pint will go up 4p. Somebody is telling lies. A rise like this AND continuing cheap supermarket booze will kill off many more pubs.