Budget day looms

By: Chris Mercer - 10 March 2010 15:29

UK prime minister Gordon Brown has revealed the date for the Government's 2010 Budget announcement.

Drinks companies will discover the extent of any tax rises on their products on 24 March, when Chancellor Alistair Darling will unveil the annual Budget to Parliament.

Trade bodies are clamouring for the Government to hit the emergency stop button on its "tax escalator", which provides for a 2% above inflation rise on all alcoholic drinks in the upcoming Budget.

At current inflation, that would mean a 5% tax rise - at a time when most people in the private and public sectors have seen wages frozen as a result of the economic downturn.

Wine and beer tax is already up 20% inside two years, with spirits tax up around 16% in the same timeframe.

Surely, it is time for a break.