Brits emerging from Dry January are facing a sobering financial reality as a significant alcohol duty hike comes into force. From today, the price of your favourite alcoholic drink is set to increase following a 3.66% rise in duty, directly aligned with the Retail Price Index (RPI) measure of inflation.
The Cruel Timing of the Tax Rise
Consumer rights expert Martyn James highlighted the unfortunate timing, stating: "Is there a crueller irony than alcohol duty rising the very day that dry January ends? For those of us - myself included - who are doing our level best to moderate our alcohol intake, this is a big slap in the face." He added that the government's decision has "taken the sparkle out of the fizz" for those looking to celebrate the end of their month-long abstinence.
How Much More You'll Pay
According to detailed figures from the Wine and Spirit Trade Association (WSTA), the duty increase translates to tangible price rises at the till:
- Red Wine (Merlot, 14.5% ABV, 75cl): Rising from £9.50 to £9.64 (up 14p)
- White Wine (Sauvignon Blanc, 12.5% ABV, 75cl): Rising from £8.75 to £8.87 (up 12p)
- Gin (37.5% ABV, 70cl): Rising from £19.00 to £19.38 (up 38p)
- Scotch Whisky (40% ABV, 70cl): Rising from £18.00 to £18.39 (up 39p)
- Prosecco (11% ABV, 75cl): Rising from £12.50 to £12.61 (up 11p)
- Lager (4.6% ABV, 4x330ml): Rising from £6.00 to £6.06 (up 6p)
- Cider (4.5% ABV, 4x330ml): Rising from £5.25 to £5.27 (up 2p)
- Vodka and Diet Cola RTD (5% ABV, 25cl): Rising from £2.15 to £2.16 (up 1p)
Industry Under Pressure
The uprating, confirmed during last year's Autumn Budget, has drawn sharp criticism from industry leaders. Emma McClarkin, chief executive of the British Beer and Pub Association, warned: "These changes unfortunately increase the likelihood of further price rises, which no brewer or publican would want to inflict on their customers." She emphasised that UK brewers already contend with some of Europe's highest beer duty rates, putting "razor-thin profit margins" at further risk.
Miles Beale, chief executive of the WSTA, pointed to compounding challenges: "For the nation’s wine and spirit sector the complexities of price changes, especially for wine which is now taxed by strength, mean more red tape headaches ahead." He noted that additional costs from National Insurance contributions, business rates, and waste packaging taxes leave businesses with "no choice but to increase prices in order to keep afloat."
Context and Recent Changes
This year's increase follows a 3.6% hike last year, which added 54p to a bottle of wine and 32p to a bottle of gin. The current alcohol duty regime, introduced in August 2023, includes a new system taxing wine by its strength. The WSTA reports that the tax on a bottle of 14.5% red wine has increased by £1.10 since this system began.
The duty structure links tax partly to alcoholic strength, prompting some beer brands—including Foster's, Carlsberg, Coors Light, and Sol—to reduce their ABV in recent months to manage costs.
A Treasury spokesman defended the policy, stating: "Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day."
For consumers, the message is clear: the cost of enjoying a drink in the UK has just become that little bit more expensive.
