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Chancellor Kwasi Kwarteng has scrapped planned increases in the tax paid on beer, wine, spirits and cider.
The duty paid on alcohol is re-valued each year to keep pace with inflation - though it has been either cut or frozen in every budget since 2013.
A new alcohol duty system, announced by Mr Kwarteng's predecessor Rishi Sunak, will be implemented from 1 August 2023.
Announcing the plans, Mr Kwarteng said it was wrong to raise duty "at this difficult time".
"Our drive to modernise also extends to alcohol duties," he said during his speech in the House of Commons setting the mini-budget.
Source: BBC News