Budget 2013: beer tax cut, boost for jobs
by Tom Walker | 20 Mar 2013
The chancellor George Osborne has scrapped the annual alcohol duty escalator and will also cut the price of a pint of beer by 1p from 24 March.
Binning the above-inflation rise in beer duty is aimed at helping out the UK's pub sector - although he confirmed that a planned duty increase for other forms of alcohol would still go ahead.
There will also be help for small and medium-sized businesses with the introduction of the new Employment Allowance.
The new scheme will take the first £2,000 off the employer National Insurance bill of every company in the country, meaning that around 450,000 small businesses - one third of all employers - will pay no employer National Insurance at all.
Most significantly, the scheme will be extended to all charities and community sports clubs, which often rely on part-time staff.
Businesses should also find it easier to secure financing in the form of loans with an increasing amount of lending being made available from the government's Business Bank, first announced late last year.
The chancellor also announced new tax reliefs for the creative industries - including the UK's visual effects sector.
Osborne also announced that the corporation tax rate will be reduced from 28 per cent to 21 in 2014 - and then to 20 per cent from April 2015, making it the lowest business tax of any major economy in the world.
The budget received mixed reviews, with large industry bodies broadly welcoming the chancellor proposals. The Confederation of British Industry (CBI) said the cut in corporation tax would make the UK one of the most competitive locations in which to do business.
John Walker, chair of Federation of Small Businesses (FSB), said: "This Budget opens the door for small firms to grow and create jobs.
The Chancellor has pulled out all the stops with a wide-ranging package of measures to support small firms."
Brigid Simmonds, CEO of the British Beer and Pub Association (BBPA) congratulated the government for its decision to cut beer tax.
She said: “This is absolutely brilliant news, and it will make George Osborne the toast of Britain’s pubs today. By cutting the tax on beer, he has moved to boost jobs in Britain’s pubs at a time when it is most needed.
“In also abolishing the Beer Tax escalator, the chancellor has ended a hugely damaging policy that would have made Britain’s’ beer the most heavily taxed in Europe."
The chancellor George Osborne has scrapped the annual alcohol duty escalator and will also cut the price of a pint of beer by 1p from 24 March. Binning the above-inflation rise in beer duty is aimed at helping out the UK's pub sector - although he confirmed that a planned duty increase for other forms of alcohol would still go ahead. There will also be help for small and medium-sized
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