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Fuel and beer duty frozen by chancellor in 2020 budget

Peter Kelly
Mar 11, 2020

New Chancellor Rushi Sunak has delivered his inaugral budget and inevitably precautionary measures over coronavirus dominated proceedings.

He unveiled a £30bn plan to help the economy through the virus outbreak but here are some of the other long term policies that will have an impact. 

Mr Sunak announced that over £600bn would be invested in developing infrastructure such as road, rail, housing and broadband projects over a five-year period. 

This is aimed at delivering the Conservatives’ election promise to improve economic growth outside of London and the chancellor said it would bring “net public investment to the highest levels in real terms since 1955.”

In other measures, the chancellor announced that fuel duty would be frozen for another year. The freezes in fuel duty has come at a cost of ost over £100bn to the exchequer since 2010.

Pubs are getting a boost from the cancellation of a planned rise in beer and spirits duty, whilst duties for wine and cider are also frozen. This will be great for campaigners who were keen to ensure the duty would not rise as it would hurt pubs. 

Furthermore, Sunak said business rate discounts for pubs will be increasing this year to £5,000, up from £1,000.

There will also be further investment into developing flood defences as the chancellor promised £5.2bn over the next six years and £200m for local communities to build flood resilience.

This budget comes amongst some of the biggest drops of shares since 2008 and so whilst this is Mr Sunak’s first budget, it was not going to be an easy settling in process. 

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