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UK Alcohol Duty Rises 3.66% as New Rates Take Effect

Industry groups warn the strength‑based regime will push up prices for wine, spirits and beer.

Overview

  • The RPI‑linked increase effective 1 February lifts duty on a 37.5% bottle of gin by 38p, Scotch by 39p and a 14.5% red wine by 14p.
  • Producers say they will pass higher taxes through to customers after sustained cost pressures from labour, energy and packaging.
  • Beer duty also rises on drinks sold in pubs and retail for the first time since 2017 under the 2023 strength‑based system.
  • The government defends the policy as funding public services and is giving pubs in England a 15% business rates discount from April with bills frozen for two years.
  • Distillers have urged the Chancellor to end perceived “spirits discrimination” in an upcoming duty review, as the WSTA notes duty on a 14.5% red wine is about £1.10 higher per bottle than in August 2023.