In a budget short on giveaways, there were nevertheless a few points that are important for the fmcg industry to acknowledge. Here’s a quick list, and keep your eye on thegrocer.co.uk for more coverage of the Budget’s consequences over the rest of the week.
- The alcohol industry was a big winner, with duty on spirits and cider cut by 2%, beer duty down 1p on a pint for the third year in a row, and wine duty frozen. Reactions here.
- The surprise announcement at the top of the Budget that farmers will be allowed to average incomes over five years for tax purposes, giving them greater protection from a fluctuating economy
- Legislation aimed at multinationals who bank offshore for tax reasons to be in place by the end of next month
- No change to tobacco duty rises, which will stay at 2% above inflation, and a cancellation of the scheduled fuel duty increase
- Corporation tax cut to 20%
- Minimum wage to rise to £8 by 2020
- Expansion of superfast broadband