The largest single alcohol duty increase in almost 50 years is set to take effect from Tuesday, prompting warnings from the hospitality sector that prices will be passed on to customers. The new system taxes alcohol products based on strength rather than categories, as announced in the 2023 Spring Budget.
Jody Waterworth, owner of Pier 36 Bar and Restaurant in Donaghadee, County Down, described the changes as 'sickening'. He said: 'It's becoming increasingly difficult to mitigate and keep costs down - everything is going up - there's only so much we can ask of our customers.'
Under the new rules, prices will rise in line with the retail price index (RPI) for all products, both UK-made and imported. While there will be no duty increase for a 4% ABV pint of draught beer, a 40% ABV 25ml serving of whisky will see a 3p rise, and a 250ml glass of still wine at 11% ABV will increase by 5p.
Colin Neill, chief executive of Hospitality Ulster, said the duty increases were 'bad news for customers' and could cause 'misery' and damage to businesses. He added: 'This has left hospitality businesses - who are fighting to break even - no choice but to pass on the significant duty increases to customers.'
Waterworth expressed outrage, stating: 'They are attacking an industry that's already on its knees, they should be trying to reduce VAT and tax - I think it's an outrage.' However, Chancellor Jeremy Hunt said the switch would help 'the great British pub', and HMRC stated the new system would 'make the system fairer and responsive to new products entering the market as consumer tastes evolve.'
