Alcohol duty has risen by 3.66% from today, in line with RPI inflation – here is how it will impact the price you pay for your favourite tipple
Brits have been warned they will pay more for their favourite alcoholic drink from today as a new tax rise comes into force – the day after Dry January finishes.
Alcohol duty has risen by 3.66%, in line with RPI inflation. This will add 11p on a bottle of Prosecco with 11% alcohol by volume (ABV), 14p on a bottle of red wine with 14.5% ABV and 38p on a bottle of gin with 37.5%, according to the Wine and Spirit Trade Association (WSTA).
The uprating was confirmed last year during the Autumn Budget. Wine and spirits bosses have warned that firms “have no choice but to increase prices” to stay afloat.
Last year, drinkers faced a 3.6% hike to alcohol duty, adding 54p to a bottle of wine and gin by 32p, while draught duty was cut by 1.7%, or a penny off a pint.
At the same time, a new system was introduced that saw wine taxed by strength. WSTA said the tax on a bottle of 14.5% red wine has gone up £1.10 a bottle since the recent alcohol duty regime was introduced in August 2023.
Alcohol duties are partly linked to the strength of drinks. A number of beer brands, including Foster’s, Carlsberg, Coors Light and Sol, have reduced their strength in recent months to reduce their costs.
Martyn James, consumer rights expert, told the Mirror: “Is there a crueller irony than alcohol duty rising the very day that dry January ends?
“For those of us – myself included – who are doing our level best to moderate our alcohol intake, this is a big slap in the face.
“Surely we deserve a celebratory drink without additional costs being heaped on top? The government’s decision has really taken the sparkle out of the fizz.“
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “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 and risk one of the UK’s world-renowned industries producing the greatest beers in the world.”
Miles Beale, chief executive of the WSTA, said: “For the nation’s wine and spirit sector the complexities of price changes, especially for wine which is now taxed by strength, mean more red tape headaches ahead.
“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.“
A Treasury spokesman said: “Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day.”
How much more your favourite drink will cost
The below figures were provided by WSTA and show the price before alcohol duty increased, and what these drinks will cost from today.
- Red Wine (Merlot) 14.5% ABV, 75cl – £9.50 rising to £9.64 (up 14p)
- White Wine (Sauvignon Blanc) 12.5% ABV, 75cl – £8.75 rising to £8.87 (up 12p)
- Gin 37.5% ABV, 70c – £19 rising to £19.38 (up 38p)
- Scotch Whisky 40% ABV, 70cl – £18 rising to £18.39 (up 39p)
- Vodka and Diet Cola RTD 5% ABV, 25cl – £2.15 rising to £2.16 (up 1p)
- Prosecco 11% ABV, 75cl – £12.50 rising to £12.61 (up 11p)
- Lager 4.6% ABV, 4×330 ml – £6 rising to £6.06 (up 6p)
- Cider 4.5% ABV, 4x330ml – £5.25 rising to £5.27 (up 2p)
