More pressure on pubs with alcohol price rises

WINE and spirits bosses have warned that firms “have no choice but to increase prices” to stay afloat as an increase to alcohol duty comes into force.

- HENRY SAKER-CLARK

In November's autumn budget, Chancellor Rachel Reeves confirmed that alcohol duty would increase in line with Retail Prices Index (RPI) inflation.

It means that the tax charged on alcoholic drinks will increase by 3.66% from Sunday February 1.

The tax is directly levied upon alcohol producers but industry chiefs have warned there will be a “trickle down” effect to shoppers after witnessing a number of other cost increases in recent years.

Official data showed that the changes would see the duty on a typical bottle of gin, with 37.5% alcohol by volume (ABV), increase by 38p to £8.98, after VAT.

A bottle of Scotch whisky at 40% ABV would see its duty increase by 39p to £9.51.

Meanwhile, a bottle of 14.5% red wine will see its duty increase by 14p.