Alcohol duty to be increased by 2%
The Government will go ahead with an increase in alcohol duty of 2%, Chancellor Alistair Darling has announced in the Budget.
The increase will anger the ailing beer and pub industry which had called on Mr Darling to scrap plans for the tax rise.
The British Beer and Pub Association (BBPA) has said the increase would mean an extra 5p on the average pint of beer.
The UK pub industry is already under great pressure, with pubs closing at an average of 39 a week.
The 2% rise in alcohol duty will be implemented at midnight on Wednesday.
Tobacco duty will also go up by 2%, starting at 6pm on Wednesday evening.
Mr Darling said said these measures would raise more than £6 billion by 2012.
BBPA and the Campaign for Real Ale (Camra) ran a campaign to "Axe the Tax", calling for Mr Darling to scrap the duty on beer, which was planned as a 2% rise above the rate of inflation over the next four years.
Reacting to the announcement, Mike Benner, Camra chief executive, said: "It is disappointing that the Chancellor has ignored widespread public concern about the plight of Britain's pubs and decided to press ahead with an increase which will result in yet more valued community pubs closing down.
"Well-run community pubs are already struggling as a result of last year's 18% increase in beer duty and the recession."
