Britons are facing higher prices for their preferred alcoholic beverages starting today due to a new tax increase following the end of Dry January. Alcohol duty has gone up by 3.66%, aligning with RPI inflation. This hike translates to an extra 11p for a bottle of Prosecco with 11% ABV, 14p for a bottle of red wine with 14.5% ABV, and 38p for a bottle of gin with 37.5% ABV, as reported by the Wine and Spirit Trade Association (WSTA).
The decision to raise alcohol duty was finalized last year during the Autumn Budget. Industry leaders in wine and spirits have cautioned that pricing adjustments are necessary for business sustainability. Notably, in the previous year, consumers faced a 3.6% increase in alcohol duty, resulting in an additional 54p for wine and 32p for gin per bottle, while draught duty saw a 1.7% reduction, equivalent to a penny less per pint.
Simultaneously, a new taxation structure was implemented, with wine now being taxed based on its alcohol strength. WSTA highlighted that the tax on a bottle of 14.5% red wine has surged by £1.10 since the revised alcohol duty regime was introduced in August 2023.
Alcohol duties are interconnected with beverage potency, prompting several beer brands like Foster’s, Carlsberg, Coors Light, and Sol to lower their alcohol content recently to control expenses.
Emma McClarkin, the chief executive of the British Beer and Pub Association, expressed concerns about potential price escalations due to the latest changes. Miles Beale, WSTA’s chief executive, emphasized that the evolving pricing structures, particularly for wine taxed by strength, pose additional challenges for the industry.
A Treasury spokesperson defended the alcohol duty hike, stating its significance in maintaining robust public finances to support essential services. The WSTA provided a comparative table showing prices pre and post the alcohol duty increase for various beverages.
By selecting Daily Mirror as a ‘Preferred Source’ on Google News, readers can access their preferred news conveniently.