Drinkers face higher alcohol prices from next February after a record rise in booze duty, with a bottle of wine set to jump by 18p and a pint of beer by 3p, industry analysis shows.
The increases follow Chancellor John Healey's Budget, delivered today, which did not include another new rise in the tax but confirmed previously planned increases will go ahead. Alcohol duty will rise in line with the retail price measure of inflation, which is higher than the consumer price index.
Record 4.55% rise confirmed
The Wine and Spirit Trade Association says it has been told by the Treasury that February's jump will be 4.55%. That will add 14p to a bottle of Prosecco, 18p to a bottle of 14.5% strength red wine and 49p for a bottle of gin, once higher VAT is included.
A pint of beer will rise 3p, and a bottle of lager by 8p once VAT is included, according to industry analysis.
Industry reaction
Miles Beale, chief executive of the WSTA, said: "It's a breath-taking hike. No-one will be toasting this record breaking 4.55% RPI increase on top of rising inflation – most of all British consumers who will be paying for this."
He went on: "Instead of providing breathing space in a cost of living crisis the Chancellor's alcohol tax hikes will further suffocate British business and serve up nothing for consumers."
Emma McClarkin, head of the British Beer and Pub Association, said the confirmation of lower business rates for the next two years and an increase in the tax-free thresholds for smaller pubs was "a very welcome step in supporting pubs". However, she added: "When the entire brewing sector is united on calls to lower the cost of doing business, to have a rise in beer duty is troubling as it will undoubtedly push up the price of a pint."
Treasury revenue expectations
The Treasury expects to collect £13 billion from alcohol duty this year, driven by increases to the rate offsetting an assumed average 1% decline in alcohol consumption in each year.
Smokers were spared new hikes in tobacco duty in the Budget, following an increase earlier this month for cigarettes, rolling tobacco and vapes.
