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Government drops plans to raise cider duty – for now

07 April 2010 by
Government drops plans to raise cider duty – for now

The Government has abandoned plans for a 10% increase on cider duty in the face of strong opposition to the move.

In the rush to secure legislation before Parliament breaks up before the General Election, Ministers rescinded the tax rise, which was contained within the Government's Finance Bill, which is one of the outstanding bills still being considered by Parliament.

Chancellor Alistair Darling announced a rise of 10% above inflation for cider during his Budget speech last month.

The Government had favoured a steep rise, arguing that cider had been treated more favourably than other types of alcohol in the past.

But opposition parties argued that it would be unfair on artisan cider makers at a time when British firms were already struggling with the recession.

Labour has said all the tax measures will be re-introduced should Labour be re-elected.

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By Neil Gerrard

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