The Sun is reporting that this year's beer duty rise will be scrapped and the beer duty escalator (which sees beer duty rise annually) will be scrapped entirely. This would see real terms cuts in beer duty in each year.
The move is estimated to cost about £70million. But late-night Treasury talks were still going on yesterday on the future of alcohol tax on spirits and wine.
Some ministers say those should rise, along with the level on super-strength beer and cider, as a sop to health campaigners now the Government has abandoned minimum alcohol pricing. Britain’s beer drinkers already pay the second highest duty of EU drinkers.
Industry chiefs had urged Mr Osborne to intervene. Nearly a quarter of MPs backed a Commons campaign to bin the beer rises.