CHANCELLOR EXPECTED TO RAISE ALCOHOL DUTY IN BUDGET

Chancellor John Healey is expected to announce an increase in alcohol duty in the Budget, according to accounts of the proposal. The proposed rise would follow the Retail Price Index rate cited for the plan, 3.9%. On that basis, the estimated duty charge on a pint would increase by 2p, from 50p to 52p. A bottle of wine could incur an additional 10p to 12p, depending on its strength. The Treasury has been asked to comment on the expected change.

Alcohol duty applies to alcoholic drinks above 1.2% strength at production, distribution or import. A bottle of gin at 37.5% strength could incur an additional 35p under the proposal. Former Chancellor Rachel Reeves announced an inflation-linked duty rise in the previous Budget. Duty rose by 3.66% in February, adding 6p to a four-pack of lager and 13p to a standard bottle of wine. A bottle of prosecco incurred an 11p increase.

The Wine and Spirit Trade Association and the British Beer and Pub Association have called for a duty freeze. Miles Beale, chief executive of the Wine and Spirit Trade Association, said the Chancellor could “put the brakes on relentless and punishing alcohol tax increases”. The UK Spirits Alliance has called for a cut in spirits duty, which it says has risen by 17% since August 2023. Labour MP Carolyn Harris, chair of the All-Party Parliamentary Group for UK Spirits, called on ministers to treat different categories of drink equally. Healey has yet to announce the Budget decision.