Enjoying your favourite tipple could be more expensive from Saturday (Image: Getty)
The is set to increase the cost of certain alcoholic drinks this weekend. As of Saturday, February 1, a tax hike will cause wines and spirits with a higher alcohol content to become more expensive. The duty was initially implemented on August 3, 2023, but the previous Conservative government put a temporary pause on it.
Alcohol tax will rise in accordance with the Retail Price Index (RPI) at 3.6%, and a new system will be introduced to tax wines based on their strength. For instance, the duty on a bottle of gin will surge by 32p, while wine at 14% abv will see an increase of 54p.
The Wine and Spirit Trade Association estimated that the new duty hikes introduced in August could cause a 14.5% abv red wine to jump in price by 98p over 18 months. It also cautioned about additional costs coming into effect in April due to waste packaging recycling fees, adding an extra 12p for a bottle of wine and 18p for a bottle of spirits.
The new duty amounts will be calculated based on a wine’s strength (Image: Getty)
Alcohol duty is a tax levied on alcoholic drinks produced or imported into the UK, which is paid by businesses. In the past, the taxing system has been criticised for its complexity and inconsistency, as different types of drinks were subject to varying rates and regulations.
In a bold move to reform alcohol taxation, Labour’s latest Budget has introduced a streamlined system that will see fewer tax bands for beverages, while the strongest drinks remain in their current band, facing unchanged rates. This shake-up means that stronger ciders and wines sold in shops will be subject to higher taxes, inevitably leading to consumers taking on the additional costs.
Some campaigners have praised the changes, pointing to findings from Alcohol Change UK, which suggest that excessive drinking has become cheaper in recent years, contributing significantly to illness and death.
The Treasury hopes the move will lead to people choosing lower alcohol options (Image: Getty)
The HM Treasury itself has weighed in, stating: “The alcohol duty reforms have modernised and simplified the duty system, prioritising public health and incentivising consumption of lower strength products.”
But the alcohol industry has voiced its disapproval of the impending tax hikes. Miles Beale, Chief Executive of the Wine and Spirit Trade Association, expressed his concern: “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. 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 are being squeezed and consumers have to pay more.”
Duty increases coming into place on February 1
The following table shows the duty increase for ABV, based on 75cl bottles, which will be added to wines on February 1.
| ABV | Current duty rate | New rate from Feb 1 |
| 6% | £1.11 | £1.16 |
| 6.5% | £1.21 | £1.25 |
| 7% | £1.30 | £1.35 |
| 7.5% | £1.39 | £1.44 |
| 8% | £1.49 | £1.54 |
| 8.5% | £1.82 | £1.88 |
| 9% | £1.92 | £1.99 |
| 9.5% | £2.03 | £2.10 |
| 10% | £2.14 | £2.22 |
| 10.5% | £2.24 | £2.33 |
| 11% | £2.35 | £2.44 |
| 11.5% | £2.67 | £2.55 |
| 12% | £2.67 | £2.66 |
| 12.5.% | £2.67 | £2.77 |
| 13% | £2.67 | £2.88 |
| 13.5% | £2.67 | £2.99 |
| 14% | £2.67 | £3.10 |
| 14.5% | £2.67 | £3.21 |
| 15% | £3.21 | £3.32 |
For non-draught spirits, a 70cl bottle of spirit with an ABV of 37.5% will see a duty increase of 30p, while a similar bottle with an ABV of 40% will see a rise of 33p.