Alcohol duty up 2% in budget

The UK government has raised the duty on alcohol by 2% in this year's budget and confirmed it plans to continue the increase of 2% above inflation for the next 3 years as previously announced in the 2008 budget.

With the industry lobbying for an abandonment of a 2% tax escalator, the 2009 budget was swiftly condemned by the Wine and Spirit Trade Association claiming that the move threatens more job losses in a sector already facing record numbers of business failures, pub closures and worsening trading conditions. The trade body warned that Britain is now on track for duty on alcohol to reach 40% by the time of the London Olympics in 2012.