Cider makers in the UK are lobbying to avoid a tax rise amid speculation that ministers will single out the drink in the upcoming Budget.
UK Chancellor Alistair Darling announced a review of cider tax in the Government’s Pre-Budget Report, announced late last year.
With senior drinks industry sources warning this week of “growing pressure at the centre of Government” for stiffer tax rises on alcohol, many in the sector believe cider is in the chancellor’s sights.
“The review of cider duty rates, which are roughly half of those of beer, suggests a level playing field may start to emerge,” said Mark Hunter, CEO of Molson Coors UK, at an investor conference held yesterday (3 March) in New York for Molson Coors global.
Cider has traditionally been taxed much lower than other alcoholic drinks, and duty was reduced in 2003. But, cider’s new-found popularity over the last five years is thought to have caught ministers’ eyes.
Added to this is pressure from health groups to make alcohol more expensive and the Government’s need to plug a gaping hole in public finances.
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