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Alcohol

Alcohol duty

Alcohol duty rates will increase by 2 per cent above the Retail Price Index (RPI) on 28 March 2011. This will add 4 pence to the price of a pint of beer, 15 pence to the price of a bottle of wine, and 54 pence to the price of a bottle of spirits.

Higher duty on stronger beers

From 1 October 2011, the government will introduce a new additional duty on high-strength beers. This means that for beers over 7.5 per cent alcohol by volume (abv) in strength there will be an extra duty at a rate of 25 per cent of the general beer duty. This will add 25 pence to the price of a can of 'super strength' lager.

Lower duty on low alcohol beers

A reduced rate of 50 per cent of general beer duty will be introduced for beers above 1.2 per cent abv up to 2.8 per cent abv in strength. This will reduce the price of a pint of beer at 2.8 per cent abv by 18 pence. These changes will come into effect from 1 October 2011.

* Tax refers to duty, plus VAT

Tobacco

As announced in the March Budget 2010, tobacco duty rates will increase by 2 per cent above the RPI. Duty on hand rolling tobacco will increase by an additional 10 per cent. These changes will come into effect from 6pm on 23 March 2011.

Changes to the tobacco duty regime

The government is also restructuring cigarette duty to support health objectives. As a result, 'ad valorem' duty on cigarettes will decrease to 16.5 per cent, and specific duty will increase by 25 per cent above the RPI.

This will target the duty increase on cheaper cigarettes, adding 50 pence to a packet of economy cigarettes and 33 pence to a packet of premium cigarettes. These changes will come into effect from 6pm on 23 March 2011.

Tobacco: tackling fraud

The government is fully committed to tackling the illicit trade in tobacco to protect public finances and support health objectives. HMRC and the UK Border Agency will be introducing a renewed strategy to tackle this fraud from April 2011.

* Tax refers to duty, plus VAT