Non-drinking, non-smoking, non-driving pensioners who carry wicker baskets to the shops appear to be the winners in a Budget that was heavy on indirect “sin” and green taxes. But the measures announced on income tax, National Insurance (NI) and stamp duty were light enough for the chancellor to have swapped his despatch box for a now potentially taxable plastic bag.
Most of the headline-grabbing tax rises were on alcohol, tobacco and car duties. From Sunday, duty on alcohol is set to increase by 6 per cent above inflation, adding an extra 4p to the price of a pint of beer, 14p on to a bottle of wine and 55p on to a bottle of spirits. Smokers will pay 11p more for a packet of cigarettes. And drivers of “gas-guzzling” cars will pay a new top band of vehicle excise duty, increasing the rate on the most polluting models to £425.

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