Budget 2010: Entrepreneur (and the Wurzels) condemn cider duty hike

The co-founder of cider brand Brothers and West Country favourites the Wurzels have criticised the government's surprise decision to increase duty on cider by 10%.

Speaking during his Budget speech, chancellor Alistair Darling said: "There is a long-standing anomaly which has meant cider has been under-taxed in comparison to other alcoholic drinks.

"I intend to correct this. So duty on cider will increase by 10% above inflation from midnight on Sunday."

But Matthew Showering, managing director of Brothers, a company which hit the big time after being sold at the Glastonbury Festival, said the decision could be anit-competitive.

"Cider is much more expensive to produce than other types of drinks and it helps support the economy in many rural areas," he said. "We are a smallish company that pays a very large amount of tax. We employ 85 people and support many local suppliers in Somerset.

"The extra increase in tax levied on cider over and above other categories will make it less competitive and I am sure the big brewers (almost all from overseas) will be glad of that."

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