UK Pub And Tobacco Sectors Welcome Budget Duty Freeze

22nd Jun 2010 13:59

LONDON (Dow Jones)--The U.K. government's decision to freeze alcohol and tobacco duty was welcomed by the tobacco and pub sectors Tuesday, while a rise in sales tax to 20% was described as "understandable" given the nation's finances. "We welcome the coalition government's decision not to increase tobacco duties at this time," The Tobacco Manufacturers Association said. These comments were echoed by brewer and pub lobby group The British Beer & Pub Association. "This is a welcome relief for struggling pubs during difficult times," it said. The decision to freeze the beer and alcohol duty came in Chancellor of the Exchequer George Osborne's first Budget speech Tuesday. Both sectors had feared a further rise in duty as Osborne attempts to cut a budget deficit which is estimated at about 11% of gross domestic product, or about GBP155 billion for the fiscal year ending 2011. -By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; [email protected] (END) Dow Jones Newswires June 22, 2010 08:59 ET (12:59 GMT)