The price of most alcoholic drinks will go up from February as alcohol duty rises by 3.66% under Rachel Reeves’ Budget. Duty is a tax charged on every alcoholic drink made in the UK or imported. Stronger drinks face higher rates.
The chief executive of the Wine and Spirit Trade Association (WSTA), Miles Beale, said the change will “push up prices” and comes while the sector is “still recovering from the tax hikes introduced in February.”
A WSTA spokesperson said prices have already climbed by nearly £1 a bottle over the past year once duty, VAT and packaging charges are included.
Here’s what the 3.66% increase means for common drinks:
- Red wine (13.5%): +13p
- White wine (11%): +10p
- Gin (37.5%): +38p
- Whisky (40%): +39p
- Prosecco (11%): +11p
- Lager (4.6%): +6p
- Cider (4.5%): +2p
Health groups back the rise. The Chair of the Alcohol Health Alliance, Professor Sir Ian Gilmore, said it reflects a “more responsible approach to alcohol taxation” and argued that keeping duty in line with inflation is “necessary to save lives, reduce harm and protect the health of the nation.”
He said it should be seen as a return to long-standing policy rather than a steep increase.
Studies from Alcohol Change UK and Drinkaware show young adults are drinking less, with more choosing low-strength drinks or cutting out alcohol altogether. Lower sales are one reason government duty income is expected to fall even after the update.
Shops, pubs and bars are expected to adjust their prices as new stock reaches them in February.