Highlights
- Duty on typical gin bottle rises 38p to £8.98 while whisky increases 39p to £9.51.
- Beer duty affects pubs for first time since 2017 as industry faces mounting cost pressures.
- UK ranks third highest in Europe for alcohol excise rates behind Finland and Ireland.
Alcohol duty in Britain is an excise tax paid by producers and importers, calculated based on strength (ABV) and drink category. In November's autumn budget, chancellor Rachel Reeves confirmed duty would rise in line with Retail Prices Index inflation.
Official data shows a typical gin bottle with 37.5 per cent ABV will see duty increase by 38p to £8.98 after VAT, while a 40 per cent ABV Scotch whisky bottle rises 39p to £9.51. A 14.5 per cent red wine bottle will increase by 14p.
Industry faces pressures
Miles Beale, chief executive of the Wine and Spirit Trade Association, told Wales Online "Despite the OBR (Office for Budget Responsibility) at last acknowledging higher prices lead to a decline in receipts, the Government fails to recognise that its own policy is benefiting no-one.
Add to this all the other costs including NI (national insurance) contributions, business rates and waste packaging taxes – and businesses have no choice but to increase prices in order to keep afloat, which unfortunately means consumers are going to take the hit once again."
The WSTA noted tax on a 14.5 per cent red wine bottle has risen £1.10 since the new alcohol duty regime launched in August 2023.
Some beer brands including Foster's have reduced their strength to 3.4 per cent recently to lower duty costs, as beer below 3.5 per cent ABV pays significantly less tax.
Pubs hit hard
Emma McClarkin, chief executive of the British Beer and Pub Association, noted "These changes unfortunately increase the likelihood of further price rises, which no brewer or publican would want to inflict on their customers.
For brewers, who already pay some of the highest rates of beer duty in Europe, this increase will add further strain to their already razor-thin profit margins."
Beer duty will affect both pubs and supermarkets, impacting pubs for the first time since 2017.
A Treasury spokesman added "Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day."
