Chancellor Rachel Reeves is considering increasing alcohol duties in next month's Budget. She has not ruled out increasing tax on beer, wine and spirits because of efforts to fill what Labour has said is a £22 billion hole in public finances, The Telegraph reports. However, the drinks industry has cautioned that the move would be counter-productive, leading to lower revenues and that it would have a "catastrophic" impact on pubs.
The loss in revenues was only £100 million less than Ms Reeves has said will be raised by reducing the winter fuel allowance for pensioners.Hospitality bosses and producers have stressed that another increase could have a similar impact, in deterring drinkers from restaurants and pubs.Miles Beale, the chief executive of the Wine and Spirits Trade Association , said businesses were still reeling from the last increase in duties.