Alcohol duty to rise with inflation, adding 2p to a pint
John Healey has announced that alcohol duty will rise with inflation from 1 February, adding about 2p in tax to a pint. The increase comes despite calls from pubs and trade groups for a freeze, and may add pressure to hospitality businesses and customers already facing higher costs.
The 3.9 per cent rise takes duty on a pint from about 50p to 52p; duty on an average bottle of wine will increase by 10p to 12p, and on a bottle of 37.5 per cent spirits by 35p. The government also announced £10 million in duty relief for more than 2,000 small beer and cider brewers. Alcohol duty raised £12.44 billion in the 2025-26 financial year, below its £13.2 billion peak in 2021-22.
In short
- Alcohol duty will rise by 3.9 per cent from 1 February.
- A pint’s duty increases by about 2p.
- Small brewers will receive £10 million in tax relief.
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The case for
Linking alcohol duty to inflation can help preserve its real value and provide predictable public revenue, while ensuring alcohol prices reflect some of the wider costs associated with consumption. The increase is modest per pint, and targeted relief for small brewers may help support independent producers.
The case against
Raising duty when pubs and customers already face higher costs could further squeeze hospitality businesses, reduce demand and make social drinking less affordable. With duty receipts still below their 2021–22 peak, critics may question whether an inflation-linked increase is the right way to raise revenue, particularly when pubs and trade groups have asked for a freeze.
Explained simply
Alcohol duty is a tax on alcoholic drinks, usually paid by producers and importers and reflected in the price customers pay. The amount depends on the type and strength of the drink, and the government can change the rates.
Pubs, brewers and other hospitality businesses have faced higher costs, and trade groups have called for a pause in duty increases. The government also offers reduced duty rates to some small producers, including eligible beer and cider brewers.
Duty brings in money for public services, while changes to it can affect drink prices and businesses’ costs. The amount raised has varied over time, so a rise in rates does not necessarily mean total duty revenue will rise by the same amount.
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Originally published by Daily Mail as “Fresh blow for punters as price of print to rise by 2p after alcohol duty hike”.