Budget Announcement Confirms Price Hike for Pints
Beer drinkers across the UK will see the cost of a pint increase from 1 February 2026, following a confirmation by the Chancellor of the Exchequer, Rachel Reeves. In her Budget statement, Ms Reeves announced that alcohol duty will be uprated in line with inflation.
The duty typically rises with the Retail Price Index (RPI) each September. This year, the RPI figure used was 4.5%. The formal increase will now take effect on the first day of February next year.
Heineken Reduces Strength of Popular Foster's Lager
In a separate but concurrent move, Heineken UK has confirmed it will lower the alcohol content of its popular Foster's lager, also from February 2026. The alcohol by volume (ABV) will be reduced from its current 3.7% to 3.4%.
This strategic change allows Heineken to take advantage of a lower duty band for weaker alcoholic beverages. The current duty payable is £9.61 per litre of alcohol for drinks with an ABV between 1.3% and 3.4%. For beers in the 3.5% to 8.4% ABV range, this jumps significantly to £21.01 per litre of alcohol.
A spokesperson for Heineken UK stated the decision supports responsible consumption and offers a competitively priced lager for pubs and retailers. They emphasised that the new recipe has been carefully developed by master brewers to retain the "unmistakably Foster's" taste, describing it as "crisp, balanced and refreshing".
The spokesperson also confirmed that the reformulated Foster's has undergone "extensive consumer testing" to ensure it delivers the same experience. This follows a similar move earlier this year, when Heineken also cut the ABV of its Sol Mexican beer brand to 3.4%.
What This Means for UK Consumers
The combination of these two announcements means that from February 2026, consumers will likely be paying more for a pint of Foster's that contains less alcohol. The dual impact of the government's duty increase and the brewer's strategic recipe change reflects broader trends in the industry, balancing economic pressures with shifting consumer preferences towards lower-strength options for health reasons.
It is a clear signal that both fiscal policy and corporate strategy are aligning to reshape the UK's beer market in the coming year.
