George Osborne also announced a penny will be taken off the price of a pint of beer and cider duty will be cut by 2%. Wine duty will also be frozen.
In response to the announcement, Wine and Spirit Trade Association chief executive Miles Beale, said: "We are delighted that the Government has listened to consumers and taken action to address the UK’s excessive spirit duty rates. This small drop in duty will result in a big cheer for the UK’s 24m spirit consumers.
“We campaigned for a cut in duty across all products and are disappointed that the UK’s 30m wine consumers did not receive a duty cut too. But freezing wine duty is an improvement and a first step towards supporting wine businesses that are looking to invest in the UK, create jobs and back British pubs.”
Diageo GB managing director, Andrew Cowan said: “Thousands of people across the nation will this evening raise a happy toast to the Chancellor. The alcohol industry generates billions for the economy and flies the flag for the UK abroad. This cut will mean that a 400 year historic industry like Scotch whisky will remain a crucial, and vibrant, part of the British economy for many more years to come.”
Chair of the National Association of Cider Makers, Martin Thatcher added: "We are delighted that the Chancellor has decided to support the British cider industry by cutting duty in his Budget Statement. This is a very welcome decision and proves the Government understands the huge importance of our industry to rural communities.
"This important decision will be celebrated by cider makers up and down the country as it protects the investment they have made over many years to grow the industry and support thousands of jobs.”