UK Alcohol Duty Hike 2026: Beer, Wine, Spirit Prices Rise Tomorrow

On February 1, 2026, the UK will see an increase in alcohol duty by 3.66%. This hike follows Chancellor Rachel Reeves’ announcement in November, which aligns the tax rise with Retail Prices Index (RPI) inflation. Industry leaders have stated that companies will have to raise prices to cope with the increased costs.

Impact on Alcohol Prices

The new duty will directly affect multiple types of alcoholic beverages. For instance:

• A standard bottle of gin (37.5% ABV) will see a duty increase of 38p, bringing its total to £8.98.
• A 40% ABV bottle of Scotch whisky will rise by 39p to £9.51.
• A 14.5% red wine bottle will experience a 14p increase, making price adjustments inevitable.

According to the Wine and Spirit Trade Association (WSTA), the duty on red wine has surged by £1.10 since the current system was implemented in August 2023.

Industry Concerns

Industry representatives, including the UK Spirits Alliance, have expressed their worries over the tax hike. They argue that the current duty structure discriminates against spirits and complicates pricing. This situation is worsened by additional costs like National Insurance, business rates, and packaging taxes.

Emma McClarkin, CEO of the British Beer and Pub Association, emphasized the pressure on brewers. She pointed out that the increased duty would strain already thin profit margins, potentially harming one of the UK’s renowned industries.

Calls for a New Approach

Many in the industry are emphasizing the need for a review of alcoholic beverage duties. Braden Saunders of the UK Spirits Alliance remarked on the timing of the increases, highlighting that they coincide with the end of “dry January.” He criticized the government’s reliance on the spirits sector for revenue.

Further, Allen Simpson, CEO of UKHospitality, noted the unsustainable cost pressures facing hospitality businesses. He urges suppliers to consider the economic climate before enforcing price hikes on consumers.

Government Response

The Treasury defended the duty increases, stating that they play a crucial role in maintaining public finances. They argue that the increases are necessary to support public services and alleviate broader cost-of-living issues.

As the price hikes come into effect, consumers can expect higher costs across various alcoholic beverages, following years of increasing financial pressure on the industry.