Alcohol and Fuel Duty Freeze Extended

A freeze on alcohol duty will be extended to February 2025 under measures announced by the UK Chancellor.

The island follows the UK rates on these and other duties under the Customs and Excise Agreement.

The freeze in duty was due to end in August but has been extended to February next year.

You can see more on alcohol duties here.

Tory Chancellor Jeremy Hunt also announced that fuel duty will remain at its current rate and be frozen for the next 12 months and extended the ‘temporary’ 5p cut for another 12 months, it had been due to end this month.

EVF outlined what this could have meant for drivers of diesel vehicles, saying ‘currently almost 78p from every litre of Diesel is taken in VAT and Duty, this would rise to 83p if the cut isn’t extended’.

Mr Hunt also outlined plans to introduce a duty on vaping liquids for the first time in October 2026. A one-off increase in tobacco duty will be made at the same time.

Other headlines from The UK Budget:

• 2p cut to National Insurance
• Self-employed NI rates to drop by 2p as well to 6p.
• Air Passenger Duty raised for non-economy class plane passengers
• Energy Profits Levy – the windfall tax on UK-produced oil and gas – is extended to 2029