The Chancellor John Healey's decision to follow in the footsteps of his predecessors and increase alcohol duty was today branded “breathtaking” by The Wine and Spirit Trade Association (WSTA).
The body said that the Government should focus on stimulating growth across the country, rather than increasing tax and suffocating the British drinks sector, which will have no choice but to pass on price rises to consumers.
Miles Beale, chief executive of the Wine and Spirit Trade Association, said: "No-one will be toasting yet another RPI increase on top of rising inflation. Instead of providing breathing space in a cost of living crisis the Chancellor’s alcohol tax hikes will further stifle British business and serve up nothing for consumers.
The only way to give families and businesses a break from the suffocating economic crisis is to stop the hikes, look at the numbers and listen to those being impacted. The old tactics are not working for anyone. Increasing alcohol duty is not boosting Treasury funds, but it is closing down businesses and pricing consumers out of a bit of joy in their shopping basket.
"If Government is serious about providing growth in every postcode it has stop piling on the pain for businesses and consumers across the country and show its support to the UK drinks sector."