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ITN
Drinkers and drivers lick Budget wounds
Drinkers and drivers lick Budget wounds
Drinkers and drivers are licking their wounds as experts continue to pick through the fine detail of Alistair Darling's debut Budget.The Chancellor clobbered "gas-guzzling" cars, hiked duty on booze and promised to ease Britain through troubled economic waters. However, motorists were spared the planned 2p increase in fuel duty, due on April 1, which has now been put back to the autumn.From Sunday, drinkers will feel the pain of a 6 per cent above inflation hike for alcohol duties - putting 4p on a pint of beer, 3p on a litre of cider, 14p on a bottle of wine and 55p on a bottle of spirits. The rate will continue to rise by 2 per cent above inflation in future years.The other "sin tax" - tobacco duty - has seen an extra 11p on a packet of 20 cigarettes and 4p on five cigars.And adding to drivers' woes, from April 2009, a new vehicle excise duty regime will take effect with a range of banded rates, from nothing for the cleanest vehicles to £440 for the most polluting.A year later, there will be a new first year rate for new cars - the so-called "showroom tax" - ranging from nothing to £950, again depending on carbon emission levels.Mr Darling also slashed growth forecasts, and admitted that public borrowing will soar to £43 billion to support the economy through the expected slowdown.And rising world food and energy prices mean inflation will also run above the Government's 2 per cent target rate for most of the year.He told MPs in the Commons: "In every country in 2008, every government has one aim - to maintain stability through the world economic slowdown. This is a responsible Budget to secure Britain's stability in the face of global uncertainty."Shadow chancellor George Osborne branded it a "bad news Budget" which "kicked Britain's families when they're down".He said: "The cost of living is already rising fast and the Government has added to it with stealth taxes on cars and alcohol, when we believe that these kinds of taxes should be offset with tax reductions elsewhere."But there was good news for families as the Chancellor offered a £950 million-a-year package of benefit changes to take 250,000 more children out of poverty.And for pensioners, there was also a one-off increase in the winter fuel allowance, rising from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.© Independent Television News Limited 2008. All rights reserved.
ITN | March 13, 2008
