Chancellor John Healey is expected to deliver his inaugural Budget tomorrow, and speculation is growing that he could increase taxes on alcohol and cigarettes to raise revenue for key public services. The potential rises come amid pressure to fund vital services across Britain.
Possible Price Increases on Alcohol
Drinkers have been warned that the cost of a pint could rise by another 2p in the Budget. Wine could go up by 13p, whisky by 37p, and gin by 42p. Alcohol has been taxed according to its strength following a shake-up since 2023.
Former Chancellor Rachel Reeves confirmed a 3.66 per cent rise in all alcohol duties since last year's Budget. However, there is now speculation that Healey could raise booze duties tomorrow.
Industry Calls for Support
Emma McClarkin, CEO of the British Beer and Pub Association, said: "Currently our brewers are forced to pay some of the highest rates of beer duty in Europe, twelve times more than Germany and Spain. This Budget, the Government has a real opportunity to build on their support for the sector by freezing beer duty and increasing the draught discount. This would be an undisputed win-win meaning more affordable pints, greater investment, and more jobs."
Prime Minister Andy Burnham has sought to help struggling pubs with a promised 20 per cent business rate cut, a move welcomed by the industry.
Tobacco Duty Could Also Rise
Smokers will also be watching to see if there are further hikes in tobacco duty in Healey's Budget. Reeves' last Budget saw an additional 57p added to a packet of 20 cigarettes, as well as 28p per 10g of cigars and 97p to a 30g packet of hand rolling tobacco.
Some economists have argued that taxing alcohol and cigarettes at a higher rate could serve two purposes: generating higher revenues to fund social care and other key services, while also reducing consumption of products considered harmful to health if used regularly over time.
