Alcohol prices are set to increase from tomorrow as the government’s planned rise in tax and duties comes into effect.

During the Autumn Budget in 2024, the Chancellor of Exchequer announced that from 1st February Alcohol Duty rates on non-draught products will rise in line with the 2nd Quarter 2025 forecasted RPI inflation rate of 3.65% and that the temporary easement of wine alcohol duty bands will also cease.

Retailers selling non-draught products will need to be aware of the following changes:

• 4% alcohol by volume 500ml bottle of non-draught beer will be 2p higher
• 5% alcohol by volume 500ml bottle of non-draught cider will be 1p higher
• A 70cl bottle of 37.5% ABV spirit is set to see its duty increase by £0.30, while a 70cl bottle of 40% ABV spirit is set to see its duty increase by £0.33. 

Since the new alcohol duty system came into effect on 1st August 2023, there has been a period of duty easement aimed at making the transition easier for businesses. During this time, any wine that has an alcoholic strength of at least 11.5% but not exceeding 14.5% has been treated as if it were an alcoholic strength of 12.5% (for the purposes of duty). This flat tax rate for wines with an alcohol content between 11.5% and 14.5% will now end tomorrow on 1st February.

Retailers selling wine will need to be aware that:

• The end of the wine easement will cause an additional duty-increase for wines 12.5% to 14.5% alcohol by volume, and a decrease for wines 11.5% to 12.4% alcohol by volume.
• The more alcoholic a wine is, the higher the rate of duty is levied.
• The duty rates will not only change according to their ABV but will also increase in line with RPI inflation (3.65%).

You can find out more by visiting the official gov.uk website here.