The duty on alcohol is re-valued each year to keep pace with inflation - though it has been cut or frozen in every budget since 2013.
Mr Kwarteng said that it was wrong to raise duty at this difficult time. His drive to modernise also extends to alcohol duties, as he spoke in the House of Commons setting the mini-budget.
Cuts to duty on draught beer and cider by 5%, to help pubs hit by the flu, will be extended from February 2023 to cover kegs as small as 20 litres.
CAMRA Chairman Nik Antona said that extending draught relief will help bring consumption into pubs, clubs and taprooms and keep our beloved locals alive and thriving. There are 15 different tax rates based on type of alcohol, strength and production method. This will be reduced to six rates under the new system.
Prior to 2010 the Labour government applied for a duty escalator were committed to increasing alcohol duty rates in real terms each year - known as the duty escalator. This was scrapped in 2010 by the coalition government.