The government has dropped plans for a 10% tax rise on cider following fierce opposition to the move.

Ministers were forced to rescind the increase, announced in the Budget, as part of efforts to get laws passed after the general election was called.

With Parliament due to be dissolved on 12 April, outstanding legislation must be passed by Thursday or be dropped.

The Tories and Lib Dems have welcomed the move but Labour say it will be re-introduced if it wins power again.

The 10% above inflation tax rise for cider came into force at the end of last month after being announced by Chancellor Alistair Darling.

Mr Darling said it was justified because cider had historically been treated more favourably than other alcohol categories but the opposition parties said the move was punitive, at a time when British firms were struggling to emerge from the recession.

The Conservatives said the tax rise would now expire on 30 June, after which cider would be subject to the standard 2% increase announced in the Budget for beers and spirits.

'Major victory'

The Conservatives and Lib Dems are fighting to win seats in the west of England, the historic home of the cider industry.

The cider tax rise was included in the government's Finance Bill, which is among the outstanding bills being considered by Parliament.

The Conservatives said they also forced the government to backtrack on plans to levy a 50p monthly charge on landline phone bills - due to come into force in October - to pay for the universal roll-out of broadband.

They declared the reversal of the two tax rises - as well as another on the taxation of holiday rental homes - as a "major victory for businesses and consumers across Britain".

Labour has said all the tax measures will be re-introduced should Labour be re-elected.

'Wash-up period'

In the rush to secure legislation before Parliament breaks up, known as the "wash-up period", ministers historically have to make concessions in order to ensure that bills are approved.

Legislation to drive down fees charged by libel lawyers has also been dropped after a rebellion by Labour MPs concerned that it would deter lawyers from taking cases on.

Ministers have already confirmed that plans for a referendum on the voting system and to phase out the remaining hereditary peers from the House of Lords have been dropped from a bill on constitutional reform.

However, Labour is set to include plans for a referendum on electoral reform and an elected House of Lords in their manifesto.

The Conservatives said they also forced the government to backtrack on plans to levy a 50p monthly charge on landline phone bills - due to come into force in October - to pay for the universal roll-out of broadband.

...

Legislation to drive down fees charged by libel lawyers has also been dropped after a rebellion by Labour MPs concerned that it would deter lawyers from taking cases on.

Ministers have already confirmed that plans for a referendum on the voting system and to phase out the remaining hereditary peers from the House of Lords have been dropped from a bill on constitutional reform.

Labour has said all the tax measures will be re-introduced should Labour be re-elected.

Go fcuk yourselves...

Well said sir.

Now they need to focus on killing off the Digital Economy Bill

+1 The cider levy was a bad tax. It should have been £2 on White lIghtning the drink of choice for alcoholics and teens.

We won? Wey hey! Here's to the Westcountry! I'm off out for a celebratory cider!

The Conservatives said the tax rise would now expire on 30 June, after which cider would be subject to the standard 2% increase announced in the Budget for beers and spirits.