Alcohol duties

The Government intends to restructure alcohol duty so that all alcoholic beverages will be taxed in direct proportion to their alcohol content. There will be reduced rates for products with less than 3.5% ABV, with the stated aim to encourage innovation. The premium on sparkling wines will also be removed.

A small producer relief will reduce the tax burden on producers of products below 8.5% ABV and duty rates on draught beer and cider will be cut by 5%.

These reforms are subject to consultation which will end on 30 January 2022. In the meantime, current alcohol duties will be frozen for another year.

Tobacco duty

With effect from 6pm on 27 October, duty rates on all tobacco products will increase by 2% above inflation (as measured by RPI), on hand-rolling tobacco by 6% above inflation and the minimum excise tax will increase by 3% above inflation.

Fuel duty

Fuel duty rates will remain frozen for another year, through to 5 April 2023.

Air passenger duty

A new lower domestic band is introduced from 1 April 2023 for flights within the UK. In addition, there will be an ultra-long-haul band covering destinations with capitals located more than 5,500 miles from London.