UK Chancellor scraps duty change in non-budget budget

UK Chancellor Kwasi Kwarteng has scrapped the planned change to UK alcohol duty rates, freezing duty in this week's mini-budget announcement.

The proposed scheme was due to come into effect in 2023 and would have seen higher alcohol wines' prices go up, while lower alcohol wines would be cheaper. At the time of its announcement, it was heralded as a Brexit bonus, as varying the duty rate in relation to alcohol is not allowed under EU rules.

The proposed scheme has not yet been abandoned, with the price rises only frozen. Mr Kwarteng said he will introduce an 18-month transition measure for wine duty, meaning some change is coming.

Under these new measures, all wine between 11.5% abv and 14.5% abv will be taxed at 12.5%. The “easement” will run for 18 months from 1 August 2023 to the 1 February 2025.