UK Government Spring Budget

Chancellor Jeremy Hunt MP announced his Budget to MP’s in Parliament on Wednesday 6th March You can also read the associated HM Treasury Press release here.

Some of the main announcements that are of relevance to our sector include: 

• Alcohol - All alcohol duty increases will be frozen until February 2025 and the Alcohol Duty Stamp scheme will be coming to an end. The government will publish legislation later in the year to wind-down the Scheme.

• Vaping and Tobacco – A new duty on vaping products will come into effect from 2026. The rates will be £1.00 per 10ml for nicotine free liquids, £2.00 per 10ml on liquids that contain 0.1-10.9 mg nicotine per ml, and £3.00 per 10ml on liquids that contain 11mg or more per ml. A 12-week consultation has been published on the policy design and technical details. Tobacco duty will increase by £2.00 per 100 cigarettes or 50 grams of tobacco from 2026.

• Taxation - National Insurance for workers will be cut by 2p, meaning the main rate will fall from 10% to 8%. Self-employed National Insurance will be cut from 8% to 6%. Fuel duty will also be frozen for an additional 12 months until March 2025. The government will increase the VAT registration threshold to £90,000 from 1 April 2024.

• Economy - Inflation is at 4% and the Office for Budget Responsibility (OBR) predict Inflation is expected to fall to under 2% in 2 months’ time. The economy is expected to grow by 0.8% in 2024.

Furthermore, the Scottish Government is to receive around £295 million additional funding through Barnett consequentials.