As a follow on to my recent post regarding the 2020 budget, I wanted to highlight a lesser known area of the budget that affects many of us in our daily lives.
In the delayed budget on 11th March 2020, two groups stood to markedly benefit, compared to a history of budgets, after these groups saw continual increases in tax year on year. They are also groups that both myself and many of my clients belong to, so I feel particularly well-placed to share my insight.
The drink industry
The UK has a strong beverage industry, with some of the best-known brands in the world sourced here. In a post Brexit world, it’s important to support these industries and maintain our dominance, and in apparent agreement with this statement, Rishi Sunak has frozen all alcohol duties. This has been coupled with £1m to promote Scottish food and drink overseas, to help the world appreciate the pleasures of a dram of whisky or a wee Hendricks (and why not have a Fevertree to go with it?).
£10m has also been set aside to help distilleries go green and operate more sustainably.
Pubs – who have been regularly hit with beer and cider duty for as long as we can remember – will also get a much-needed reprieve this year.
The Motor Industry
Motorists also rejoiced with a 10th year of frozen fuel duties. £27bn will be invested on our road and motorway network, and £500m is to be put to expanding the fast-charging network for electric cars.
Finally, a £2.5bn fund has been set aside to repair ten million potholes each year for five years – helping to save reduce the annual £1bn bill the British motorist faces each year in repair bills.
So, it would seem the new chancellor is doing his best to encourage us all to drink more, and to drive more… just not at the same time, of course!