New chancellor George Osmond was expected to introduce further hikes to help reduce the nataional debt, but the industry's fears failed to materialise. The 10% above inflation increase on cider, announced in April's Budget, will also be reveresed by the end of the month. However, VAT will rise 2.5% to 20% in January 2011.
Wine & Spirit Trade Association chief executive Jeremy Beadles said:
"Today's announcement provides some relief for a sector that has faced substantial tax increases in recent years and I welcome the Chancellor's decision.
"Repeated tax hikes have produced less revenue for the Treasury and punished responsible drinkers, while failing to tackle the problem of binge-drinking."