The cost of wine and spirits is set to increase from Saturday as new tax hikes and duty adjustments take ...

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The cost of wine and spirits is set to increase from Saturday as new tax hikes and duty adjustments take effect, while pub-goers will see a small tax reduction on draught pints.

Alcohol Duties Adjusted Across the Board
Starting 1st February, taxes on alcohol will rise by 3.6%, in line with the Retail Prices Index (RPI) measure of inflation. This increase will be compounded by a new strength-based tax system, first introduced in August 2023, which is now fully implemented.

Under these changes:

A 14.5% ABV bottle of red wine will see a 54p increase in duty.
A bottle of gin will rise by 32p in tax.
Over the past 18 months, total duty increases have added 98p to the price of some wines.


While wine and spirit drinkers face higher costs, pubs and breweries will benefit from a small tax break on draught alcohol. A 1.7% tax cut for draught drinks under 8.5% ABV will equate to a 1p reduction on the price of an average-strength pint, marking the first duty reduction of its kind in a decade.

Industry Reactions:
The Wine and Spirit Trade Association (WSTA) has criticised the tax hike to BBC News, arguing that increasing duties could lead to lower sales, ultimately reducing government revenue.

“The government continues to claim that the tax hikes are part of their big plan to plug the black hole in the public finances, but a series of record-breaking tax levies are doing the exact opposite,” said Miles Beale, Chief Executive of the WSTA.

“There are no winners under the UK’s punishing alcohol tax regime – higher duty rates mean people buy less, which results in reduced income to the Exchequer, businesses being squeezed, and consumers paying more.”

A Treasury spokesperson, however, defended the decision, stating to BBC News:
“The alcohol duty reforms have modernised and simplified the duty system, prioritising public health and incentivising consumption of lower-strength products.”

Impact on Pubs: Relief or More Pressure?
Alongside the draught tax cut, the government is expanding small producer relief for drinks under 8.5% ABV, with tax benefits tapering as production scales up.

The Society of Independent Brewers and Associates welcomed these policies, saying they would help pubs compete against supermarkets selling cheap alcohol.

The government claims these measures will save the industry £85m, with Exchequer Secretary to the Treasury, James Murray, stating they would help “boost sector growth.”

However, industry leaders argue that rising operational costs, including higher National Insurance contributions and an increase in the minimum wage, will force pubs to raise pint prices by 30p to 40p to cover expenses.

Tim Martin, CEO of Wetherspoons, said these additional costs would hit pubs harder than supermarkets, claiming:
“Measures announced in the Budget have a significantly bigger impact on pub and restaurant companies than supermarkets. Politicians seem to be dinner party goers, rather than pub goers.”

The British Beer and Pub Association (BBPA) warned that pubs and brewers now face an ‘April cliff edge’, as they brace for increased costs.

On the other hand, unions have defended the wage increases, criticising large firms for “pleading poverty” while continuing to report significant profits.

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