Chancellor Rishi Sunak made no mention of tobacco or alcohol taxes – meaning prices won’t go up – as he made his “mini-budget” spring statement to MPs in the House of Commons this afternoon
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Chancellor Rishi Sunak handed in his ‘mini-budget’ in the House of Commons this afternoon, where he was under pressure to ease the cost-of-living crisis.
As widely expected, an increase in alcohol and tobacco taxes was not part of the announcement.
That means you can still pick up a pint at your local pub for the same price as before.
in his last budget In October 2021, the Chancellor announced that he would turn alcohol taxation on its head in the UK.
There is currently a complicated system of 15 separate alcohol tax brackets in four main divisions: beer, cider, spirits and wine.
But as of February 2023, the stronger a drink, the higher it will be taxed.
One rate applies to drinks between 1.2% and 3.4%, then others for 3.5% to 8.4%, 8.5% to 22% and 22% and over.
For example, a pint of Stella Artois falls 3p from £3.80 to £3.77.
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Cigarette prices also remain unchanged, after the tobacco tax was recently increased in the last budget.
Tobacco duty rates were increased by the RPI inflation rate plus 2%.
Meanwhile, the rolling tobacco rate rose by RPI inflation plus 6%.
The tariff increase pushed the price of the most expensive cigarettes to over £14 in some shops.
It was good news for riders today as the spring declaration a 5 pence per liter less fuel consumption at a time when petrol prices are rising.
Fuel tax is included in the price drivers pay at the pumps, with VAT at 20% added to the total price.
The price will be reduced from 57.95p a liter to 52.92p from 6pm tonight until March next year.
While the fuel tax cut is being welcomed by drivers, the RAC has called for further action to help bring down record fuel prices.
RAC policy chief Nicholas Lyes said: “A temporary reduction in VAT would have been a more progressive way to help drivers.
“The tax is levied at the time the fuel is sold, eliminating the possibility of retailers taking part of the tax cut themselves to boost their profits.”
The Chancellor also confirmed this today Raising the threshold at which people start paying Social Security around £3,000 this year.
The new level will be £12,570 from July and comes on top of a 1.25 percentage point increase in Social Security from April.
Income tax will be reduced by 1 pence – a drop from 20p to 19p in the pound – the first reduction of this kind in 16 years.
This is a tax you pay on your income. At the moment you pay nothing on income up to £12,570 a year if you are a ‘property taxpayer’.
However, the cut will not take effect until April 2024 – meaning it will bring no relief to families currently struggling with the cost-of-living crisis.
https://www.mirror.co.uk/money/price-cigarettes-alcohol-wont-change-26540071 The price of cigarettes and alcohol will not change as Sunak leaves them out of the Spring Statement