UK(Washington Insider Magazine) -The UK alcohol freeze has been extended by six months in a bid to help restaurants and distilleries as the prospect of a recession continues to loom. It means that alcohol duty rates will be frozen until August 2023.
The UK alcohol freeze will be enforced even if new rates are announced for next year’s budget, ahead of Jeremy Hunt’s budget update.
The extension was announced to secure the vital sector in the upcoming recession, energy, and cost-of-living crisis.
Jeremy Hunt is set to announce his first full budget on March 15th, 2023, giving him time to analyze the potential impact of the recession, which is supposed to hit the UK this winter.
With retailers and distillers awaiting Jeremy Hunt’s budget update in spring, James Cartlidge, The Treasury Minister, has reassured the alcohol sector that the UK alcohol freeze will continue to help with the cost-of-living crisis and travel disruptions.
Discussion: Cartlidge’s Summary of UK Alcohol Freeze Effects
TM Cartlidge recognizes the importance of the alcohol sector as a vital part of the country’s economy and has asked the Office for Budget Responsibility (OBR) to compile key forecasts in a bid to restore The Conservative Party’s reputation for following traditional economic measures.
However, last month, Jeremy Hunt announced the Autumn Statement, revealing a sharp rise in inflation levels, more tax rises, and spending curbs could further damage the party’s reputation.
The new measures have been enforced after forecasts which predicted that the UK was heading into an economic recession this winter.
Though the UK government has also reviewed and attempted to provide solutions that will help the public through the energy and cost-of-living crisis, measures introduced in the Autumn Statement will reduce economic growth as GPD is forecast to contract by 1.4% next year.
UK Alcohol Freeze: Autumn Update from Jeremy Hunt
In the Chancellor’s Autumn update, Jeremy Hunt insisted that he was taking a fair and fiscally-minded approach to the budget.
Hunt also cited broader global issues such as the Russian war and the pandemic as the main factors as the leading cause of the upcoming recession.
Moreover, data shows that the mini-budget introduced by previous Prime Minister Liz Truss in her short time in office was partially to blame for soaring government debts. The mini-budget also has a direct correlation to rising inflation levels.
Many Conservative MPs, including Rachel Reeves, the Shadow Chancellor, have heavily criticized Truss’s mini-budget.
