Alcohol duty changes: Is your favourite tipple going up or down?

We’ve finally reached the end of Dry January, so many of us might be going out this weekend to enjoy a drink of two.

But the cost of your favourite tipple might be a bit different from last time.

Alcohol duty rates on non-draught products is to go up in line with the Retail Price Index on Saturday 1 February.

And at the same time, a new system to tax wines based on their strength will be introduced.

This means:

• the price of a bottle of gin will go up by 32p
• wine at 14.5% ABV (alcohol by volume) will go up by 54p

A Treasury spokesperson said: “The alcohol duty reforms have modernised and simplified the duty system, prioritising public health and incentivising consumption of lower strength products.”

Industry group criticises tax hike

The alcohol duty changes have been heavily criticised by the Wine and Spirit Trade Association, which says there are “no winners under the UK’s punishing alcohol tax regime”.

“Higher duty rates mean people buy less which results in reduced income to the Exchequer,” said chief executive Miles Beale.

“Businesses are being squeezed and consumers have to pay more.”

“Unfortunately, the pain of price hikes for consumers won’t stop there as new taxes on waste packaging are coming round the corner.

“This seemingly never-ending assault on wines and spirit businesses mean consumers need to brace themselves to pay substantially more for their favourite products.”

Draught pints to cost 1p less

But it’s good news for people who like a pint.

Draught duty is being cut by 1.7%, which means a pint in the pub will cost 1p less.

That’s the first time duty on a pint of beer has been cut in 10 years.

Richard Naisby, chair of the Society of Independent Brewers and Associates, said: “The government’s increased investment in draught relief means that draught beer sold in our community pubs has a lower rate of alcohol duty than beer sold in supermarkets and should encourage more people to support their local.”

Budget for higher costs

If you’re planning a night out and the price of your favourite drink is going up, then it’s well worth budgeting for it in advance.

Use our budget planner so you can prioritise vital expenses, but still be sure you have enough left over to enjoy a few treats and luxuries.