Chancellor Rachel Reeves has delivered Labour's first Budget in 14 years, announcing £40bn in tax rises while blaming the previous government for fiscal mismanagement. Among the measures, alcohol duty on spirits will rise in line with inflation, while draught duty on alcoholic drinks will fall by 1.7%, equating to roughly a penny off a pint in pubs.
The Budget also includes significant health spending: £25bn for the NHS, with £1bn allocated to upgrading buildings and £1.5bn for new hospital beds. An additional £22.6bn will go to the day-to-day health budget, and £3.1bn for capital investment. Education receives £1.4bn to rebuild over 500 schools, part of a 19% real-terms increase in the Department for Education’s capital budget.
The 5p cut to fuel duty will be maintained into next year, costing £3bn. A flat rate duty on vaping liquid will be introduced from October 2026, and tobacco taxes will increase. The Chancellor also confirmed £1.4bn for school maintenance and £2.1bn for rebuilding schools.
Pub landlords and industry bodies have criticised the alcohol duty changes. Megha Khanna, owner of London's Gladstone Arms, said: 'A penny off a pint barely leaves a dent. The increase in alcohol duty on spirits will cause more damage to a sector that’s already struggling.' Mark Kent, Chief Executive of the Scotch Whisky Association, called the duty rise on Scotch whisky a 'hammer blow' and 'tax discrimination'.
Pensioners and patients have expressed mixed reactions. Denise Clarke, 60, a kidney cancer patient, welcomed the NHS funding, while Pritpal Kaur, 73, who lost her winter fuel allowance, said she saw no help in the Budget for her situation.
