UK Chancellor increases alcohol duty in line with inflation

Chancellor John Healey has announced an increase in alcohol duty, tying the tax to the Retail Prices Index (RPI) inflation rate of 3.9 per cent. This decision is expected to raise the duty on a pint of beer from 50p to 52p and add between 10p and 12p to the price of a bottle of wine.

To mitigate the impact, the Treasury has pledged a £10m boost to alcohol duty relief, intended to support over 2,000 British beer brewers and cider makers. Additionally, the government confirmed a 20 per cent cut to business rates for pubs, clubs, and music venues.

The Wine and Spirit Trade Association (WSTA) criticized the move, describing the tax hike as “breathtaking” and warning that it will “stifle British business” and force retailers to pass costs on to consumers during a cost-of-living crisis.