Cost of living: Alcohol prices to rise over tax change - list includes largest wine duty increase since 1975
Alcohol is set to become more expensive in the UK next month over a tax shake-up, with industry chiefs warning it will “heap misery” on consumers and further fuel inflation - see full list of price rises.
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Alcohol is set to become more expensive in the UK due to a change in taxes on booze. Alcohol duty rates will increase by 10.1 per cent from August 1, in line with September 2022’s inflation figure.
The increase was first announced in the Spring Statement. The way alcohol will be taxed will also change as from August, when a new system will be introduced that will tax alcoholic drinks according to their strength.
For example, a 40 per cent alcohol by volume (ABV) bottle of whiskey will be taxed more than a 13 per cent ABV bottle of wine. The new tax system was announced during the then Chancellor Rishi Sunak’s autumn budget in 2021 in which he dubbed it “the most radical simplification of alcohol duties for over 140 years”.
The Government froze alcohol duties due to the pandemic and the cost of living crisis. Ending the alcohol duty freeze will cost the industry around £225million, according to the British Beer and Pub Association.
The changes could see the price of an average bottle of red or white wine bought in a supermarket soar by around 44p in what will be the largest increase in wine duty since 1975. On a more positive note, drinks purchased in pubs are set to see a price cut from August under the “Brexit pubs Guarantee”.
The “Draught Relief” will cut alcohol duty by 9.2 per cent for beer and cider and 23 per cent for spirits and wines bought in pubs. However, speaking to Sky News, , director of policy at the Wine and Spirit Trade Association Simon Stannard said: “Alcohol tax rises will only further fuel inflation. It will heap more misery on consumers.
“And it will damage British business, especially those in the hospitality supply chain, who are still trying to recover from the pandemic.”
Full list of alcohol duty changes from August 2023
- Port 20% abv 75 cl - Now: £2.98 August: £4.28 Difference: £1.30
- Sherry 15% abv 75cl - Now: £2.23 August: £3.21 Difference: 97p
- Vodka 37.5% abv 70cl - Now: £7.54 - August: £8.31 - Difference: 76p
- Still Wine 12.5% abv 75cl - Now: £2.23 August: £2.67 Difference: 44p
- 440ml can beer 4.5% off trade - Now: £0.38 August: £0.42 Difference: 4p
- 440 ml can cider 4.5% off trade - Now: £0.18 August: £0.19 Difference: 1p
- pint cider 4.5% on-trade (draught) - Now: £0.23 August: £0.23 Difference: 0p
- pint beer 4.5% on trade (draught) - Now: £0.49 August: £0.49 Difference: 0p
- Spirit-based Cream Liqueur 17% abv 70cl - Now: £3.42 August: £3.39 Difference: -3p
- Pre-Mixed G&T 5% abv 250 ml - Now: £ 0.36 August: £0.31 Difference: -5p
- Sparkling Wine 12% abv 75cl - Now: £2.86 August: £2.76 Difference: 19p