Drinkers are facing higher prices following an increase in alcohol duty of 3.66 per cent on Saturday, pushing the price up of beers, wines and spirits.
The duty rise, which is linked to RPI inflation, was confirmed at the Budget in November.
The Treasury said the increase forms part of its wider approach to alcohol taxation, which it hopes will help fund public services.
Consumer rights expert Martyn James criticised the timing of the increase.
Mr James said, “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.
“Surely we deserve a celebratory drink without additional costs being heaped on top, the Government’s decision has really taken the sparkle out of the fizz.”
Figures published by the Wine and Spirit Trade Association show the increase will add 38p to a bottle of gin at 37.5 per cent ABV, pushing the price of a typical £19 bottle to £19.38.
Duty on a 70cl bottle of Scotch whisky at 40 per cent ABV will rise by 39p, taking the price from £18 to £18.39.
Tax increase was confirmed at the Autumn Budget
|
GETTY
Wine drinkers will also now have to pay more.
A bottle of red wine at 14.5 per cent ABV will increase by 14p, white wine at 12.5 per cent ABV will rise by 12p, and a bottle of prosecco at 11 per cent ABV will increase by 11p, rising from £12.50 to £12.61.
The Wine and Spirit Trade Association said the cumulative impact of duty changes has been significant.
It said that since the current alcohol duty regime was introduced in August 2023, tax on a bottle of red wine at 14.5 per cent ABV has increased by £1.10.
The organisation warned that further price rises are now unavoidable due to mounting financial pressures across the sector.
The UK already has among the highest beer duty rates in Europe
|
GETTY
Miles Beale, chief executive of the Wine and Spirit Trade Association, said the new duty structure has increased complexity for businesses.
He said, “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.”
The rising costs across multiple areas are compounding the impact of duty increases.
“Add to this all the other costs including NI contributions, business rates and waste packaging taxes and businesses have no choice but to increase prices in order to keep afloat.”
Industry figures have warned that profit margins across the drinks sector are being increasingly squeezed.
The brewing industry has also raised concerns about the sustainability of continued alcohol duty increases.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the changes would affect brewers and publicans.
She said, “These changes unfortunately increase the likelihood of further price rises, which no brewer or publican would want to inflict on their customers.”
The UK already has among the highest beer duty rates in Europe.
Wine drinkers will also pay more
|
GETTY
Mrs McClarkin added, “For brewers, who already pay some of the highest rates of beer duty in Europe, this increase will add further strain to their already razor thin profit margins and risk one of the UK’s world renowned industries producing the greatest beers in the world.”
The Treasury defended the duty increase as necessary to support public finances.
A spokesman said, “Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day.”
They added the Government had sought to balance industry concerns with the need to maintain revenue.
