Budget 2014: Chancellor scraps alcohol duty escalator and announces 1p cut for beer

The Chancellor of the Exchequer, George Osborne, said duty on alcohol would rise with inflation with the exception of Scotch whisky and other spirits and “ordinary cider”, where it will be frozen. He said the spirited fight by the pub trade would be rewarded by a 1p per pint cut in beer duty.

It is the second year running Osborne has made such a cut.

The Chancellor said: "This means pubs saved, jobs created and a penny off a pint for the second year running".

Business help​

Other announcements from this year's Budget included an extension of business rates discounts in enterprise zones for another three years and doubling of the annual investment allowance to £500,000.

The amount of export finance available was also doubled to £3bn and interest rates on loans cut by one third, in a move than could help drinks producers looking to export.

The Government will extend the grant for small businesses to support 100,000 more apprenticeships, he said. Degree-level apprenticeships will be developed.

A £7bn package was announced to help cut energy bills for British manufacturers.

Fantastic news​

Commenting on the beer duty cut BBPA CEO Brigid Simmonds said: “This is fantastic news, and George Osborne is again the toast of Britain’s brewers, pubs and pubgoers.  It will protect over 7,000 jobs over two years, mostly jobs of younger people in Britain’s pubs. 

“It also shows that the Government has understood our case, that taxes on British beer had become far too high, and action was long overdue.

“I hope this becomes a trend in future budgets for this British-made, lower-strength drink.”

You can see more reaction to the budget proposals on our Twitter​ page. You can also view our live blog here.