Increasing duty on cigarettes will only encourage the illegal trade in tobacco, independents have warned.
In his Budget this week, Chancellor Gordon Brown increased the price of a packet of 20 by 11p.
"All this will do is increase the gulf between legal cigarettes and the black market," said ACS CEO James Lowman. "The government must realise the health reasons behind the increase are undermined by the black market, and a more measured approach is needed."
The Chancellor had created greater opportunities for smugglers, said Retailers Against Smuggling, which claims 34% of independents have considered closing because of tobacco smuggling. "Smuggling is rampant because the government's high tax on tobacco draws smugglers in," said spokesman Ken Patel.
Increases in wine duty were also greeted with dismay. From midnight tomorrow, wine will go up 5p a bottle and sparkling wine 7p. Beer will go up by 1p a pint, cider by 1p a litre with duty frozen on spirits.
"We are shocked and disappointed by the decision to increase duty on sparkling wine, which already suffers from a higher tax rate than still wine," said Wine Trade Action Group chief executive Jeremy Beadles. "This is a startling U-turn for the Chancellor and will have a serious impact, particularly on the burgeoning English and Welsh wine market."
Brown was also criticised for failing to support small businesses. Corporation tax is to be cut from 30p to 28p from April 2008. But the small companies rate will rise from 20p to 22p by 2009.
The Scottish Grocers' Federation described the move as a "Tesco tax cut".
"This will do nothing to support small retailers or encourage new businesses," said a spokesman.
Sean Carter, chief executive of the Rural Shops Alliance, said: "The superstores will be rubbing their hands in glee."
In his Budget this week, Chancellor Gordon Brown increased the price of a packet of 20 by 11p.
"All this will do is increase the gulf between legal cigarettes and the black market," said ACS CEO James Lowman. "The government must realise the health reasons behind the increase are undermined by the black market, and a more measured approach is needed."
The Chancellor had created greater opportunities for smugglers, said Retailers Against Smuggling, which claims 34% of independents have considered closing because of tobacco smuggling. "Smuggling is rampant because the government's high tax on tobacco draws smugglers in," said spokesman Ken Patel.
Increases in wine duty were also greeted with dismay. From midnight tomorrow, wine will go up 5p a bottle and sparkling wine 7p. Beer will go up by 1p a pint, cider by 1p a litre with duty frozen on spirits.
"We are shocked and disappointed by the decision to increase duty on sparkling wine, which already suffers from a higher tax rate than still wine," said Wine Trade Action Group chief executive Jeremy Beadles. "This is a startling U-turn for the Chancellor and will have a serious impact, particularly on the burgeoning English and Welsh wine market."
Brown was also criticised for failing to support small businesses. Corporation tax is to be cut from 30p to 28p from April 2008. But the small companies rate will rise from 20p to 22p by 2009.
The Scottish Grocers' Federation described the move as a "Tesco tax cut".
"This will do nothing to support small retailers or encourage new businesses," said a spokesman.
Sean Carter, chief executive of the Rural Shops Alliance, said: "The superstores will be rubbing their hands in glee."
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