Alcohol prices in UK to rise as tax rate jumps 

A significant shake-up of how alcohol prices in UK are taxed could leave many booze costing more from Tuesday.

Under what the Treasury states are new “common-sense” principles, tax is charged according to a drink’s strength.

Alcohol prices in UK pubs: 

Duty will rise overall, with most wines and spirits increasing, but will fall on lower-alcohol liquors and sparkling wine. Taxes on draught pints will not revise, an additional action designed to help pubs.

Booze duties have been frozen since 2020. These modifications were initially planned for February this year but were delayed by Chancellor Jeremy Hunt as the cost-of-living situation continued.

With costs still increasing, though, at a gradual rate, the government is going on with a 10.1% incline in liquor duties and is even overhauling the system.

Drinks with alcohol by volume (ABV) below 3.5% will be taxed at a higher rate, but a tax on booze with ABV over 8.5% will stay the same, whether wine, spirit or beer.

As a consequence, sparkling wine, which was earlier taxed at a higher rate than still wine, will be 19p cheaper for a standard-strength bottle if retailers pass on the tax differences by lowering costs. A can of pre-mixed gin and tonic would be 5p more affordable.

Prime Minister Rishi Sunak stated lower duties on draught beers and ciders would “reduce the price of a pint” and help pubs.

Tax on draught beer in bars will be up to 11p lower than on supermarket beer due to the differences – a measure reported in the Budget earlier this year.