Chancellor announces 1p cut for beer duty

In today’s Budget announcement George Osborne added that duty on cider, Scotch whiskey and other spirits would be cut by 2% and wine duty will be frozen.

He said: “Last year, thanks to the persistent campaigning of my honourable friends I cut beer duty for second year in a row, which the industry estimated helped create 16,000 jobs.

“More pubs saved, jobs created , families supported and a penny off a pint for the third year in a row.”

Business support​

Other announcements included the abolition of Class 2 National Insurance contributions for the self-employed and the abolition of the annual tax return from next year, while corporation tax will be cut to 20%.

He added that there will be changes to the Enterprise Investment Schemes and Venture Capital Trusts “to ensure they are compliant with the latest state aid rules and increasing support to high growth companies”.

Osborne said:  “12 million people and small businesses are forced to complete a self-assessment tax return every year. It is complex, costly and time-consuming.

“Millions of individuals will have the information the Revenue needs automatically uploaded into new digital tax accounts.

“A minority with the most complex tax affairs will be able to manage their account on-line.

“Businesses will feel like they are paying a simple, single business tax – and again, for most, the information needed will be automatically received.”

Commenting on the beer duty cut, Brigid Simmonds, chief executive of the British Beer & Pub Association, said the move will create 3,800 new jobs this year and put £180m in the pockets of beer drinkers and pubgoers.

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