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Budget 2013 - cut on beer duty

The government has announced the scrapping of a duty escalator blamed for contributing to the closure of thousands of pubs.

The escalator - which was introduced by the Labour government - was an increase in the price of duty on every type of alcohol each year at two percentage points above inflation. This will remain on drinks such as vodka and whisky but has been removed from beer.

Furthermore the price of a pint is to be slashed by one penny a pint. The measure was seen as working to reduce the number of pub closures, as well as being a politically popular tax cut with voters.

Last year the government stoked outrage in last year's Budget by announcing a so-called 'pasty tax' that was eventually scrapped after a campaign by a number of tabloids.

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