(Alliance News) - Taxes on draught beer, cider and sparkling wine are being cut as part of a huge overhaul of the UK's alcohol duty system, UK Chancellor of the Exchequer Rishi Sunak announced Wednesday.
Sunak told members of Parliament in his budget speech that the planned increase in duty on spirits such as Scotch whisky, wine, cider and beer will be cancelled from midnight.
He said this alone will represent a tax cut worth GBP3 billion.
Sunak criticised the current system of alcohol taxes as outdated and too complicated, as he revealed a raft of changes.
"We are taking advantage of leaving the EU to announce the most radical simplification of alcohol duties for over 140 years," he said.
"We're taking five steps today to create a system that is simpler, fairer, and healthier."
The Treasury said it will slash the number of main duty rates from 15 to 6 as part of the sweeping changes.
The chancellor said changes to duties will see taxes increase on some higher strength drinks, such as some red wine and "white ciders".
However, consumers of some lower strength products, such as rose, fruit ciders, liqueurs, and lower strength beers and wines, "will pay less", he said.
The duty premium on sparkling wines will end, Sunak said, with duty aligned with still wine.
On the AIM market in London, shares in sparkling wine producer Gusbourne PLC spiked to 96.60 pence from 93.05p upon the announcement, but have since moved back to 93.05p, down 2.6% on the day.
source: PA
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Gusbourne (GUS)