Wine and spirits warn prices will rise as duty changes hit

Business & FinancePersonal Finance
31 Jan 2026 • 10:32 AM MYT
The Independent
The Independent

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  • Alcohol duty in the UK increased by 3.66 per cent, aligning with Retail Prices Index (RPI) inflation, effective from Sunday, 1 February.
  • Industry leaders warn that businesses will be forced to raise prices, with the duty on a typical bottle of gin rising by 38p and Scotch whisky by 39p, impacting consumers.
  • The Wine and Spirit Trade Association noted a £1.10 increase on a 14.5 per centred wine bottle since August 2023, with beer duty also increasing for pubs for the first time since 2017.
  • The UK Spirits Alliance has urged Chancellor Rachel Reeves to use an upcoming duty review to foster growth, address "spirits discrimination", and establish a long-term strategy.
  • The Treasury defended the increase, stating that alcohol duty plays a vital role in maintaining public finances and funding essential public services.

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