The Chancellor said he would not apologize for lowering the alcohol tax on champagne, prosecco and other sparkling wines in the household.
Speaking to Sky News, Rishi Sunak said: “I will not apologize for this. We currently have an irrational system of how we tax alcohol.
“The new system we are going to introduce will be simpler, fairer, healthier and support pubs.
“I know a lot of people enjoy having a bottle of Prosecco to celebrate something.
“We have seen sparkling wine sales in the country have doubled in the past five years, fueled by actual bottles of Prosecco that can cost around £ 7, and the price of those bottles will go down by around 87p.
“And I think that’s a good thing, because when something good happens, everyone wants to celebrate with a little champagne and we will actually remove the completely irrational tariff premium that these drinks currently carry – they are no more alcoholic than they are still.” Wine, but they pay a lot more customs.
That seems unfair and silly to me and I would like to clarify that. “
Mr Sunak also said the government’s actions to support the economy during the coronavirus pandemic resulted in better-than-expected growth in the UK as it rebounded.
The Chancellor told Sky News: “I think it’s important to remember why we are in this position.
“A year ago we outlined our plan for jobs at a time when people feared the worst, and thanks to our plan, which the independent forecaster yesterday described as remarkably successful, we have succeeded in ensuring that economic growth recovers. the economy is growing well, many more people are in employment, and unemployment is far lower than feared.
“And that’s why we had a budget yesterday that will give the British people a stronger economy.
“Stronger public services, investing in our future growth, supporting businesses, but also supporting working families by freezing fuel taxes and lowering taxes on the lowest paid.
“We were able to achieve all of this through the measures taken last year.”
However, the Chancellor has refused to commit to tax cuts before the next parliamentary elections.
When asked by Sky News whether he would cut taxes before the next election day in Westminster, which is expected to take place until 2024, Mr. Sunak said, “We started cutting taxes yesterday, with our priority being those with the lowest Incomes are.
“There is a tax cut for two million families (the universal credit equalization rate cut) and it won’t happen as usual next April – it will come in a couple of weeks so we can get help out to the people now.
“But, as I said very clearly yesterday, my ambition is to lower taxes for the people, and that is what I want to do as Chancellor.
“We have had to take some corrective action due to the crisis and the response to it, but hopefully this is done now and as we showed yesterday our priority is to make sure the work pays off, that we reward people’s efforts.” I am happy that we were able to start yesterday. “
When asked whether there would be income tax cuts before the next election, the Chancellor replied: “No, no – we’d rather talk about this budget than about all the others.”
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