Gloomy duty hike looms in Budget.

(From Off Licence News)

Byline: Rebecca Evans

The drinks trade can expect a tough Budget this year, the Treasury has warned. Officials from the Consumption, Analysis & Sectors team delivered that stark message to the Wine & Spirit Trade Association as it submitted its 2008 budget report.

Duty on alcohol is likely to increase above inflation, as the Treasury would consider "an inflationary increase in duty to be a freeze". "Any actual freeze in duty is seen in their eyes as a cut," added the WSTA in its January newsletter.

WSTA chief executive Jeremy Beadles insisted that the comments do not mean the Treasury has made a final decision. "I …