Record alcohol duty increases under the Tory Government, 1st August 2023, in Sainsburys store on brandy, cognac and other spirits & wines after Brexit

Following the UK’s Spring Budget announcement on 15th March 2023, the drinks and hospitality industry are preparing for the upcoming changes to alcohol duty – which will take effect on 1st August 2023. Draught products will receive additional relief, while duty on other alcohol products is set to rise in line with inflation. According to WSTA, the forecast inflation rate of 10.1% is being used as the measure for increasing duty rates on all non-draught products, but will be adjusted according to alcohol content. In simple terms, the higher the alcohol per volume (ABV), the higher the new duty rate will be. Duty changes in line with ABV While some products have previously been measured on volume only – such as still wine and cider – from 1st August all alcohol products will be measured by alcohol volume or ABV. What does this mean for beer? Draught beer and cider products are protected by a 9.2% discount offered on items in 20ltr containers that are less than 8.5% and use a dispense system, meaning that, for example, the duty on a 50ltr 4% lager will not change. However, the standard rate of duty on packaged beer that is 3.5% ABV and above will rise by 10.1%. This will increase the price of a 24 pack of 330ml 4.5% lager by £0.69p per case. What does this mean for wine? Most wine will see an increase of £0.44 per 75cl bottle, or a 20% increase in the duty paid (£2.67 vs the current £2.23). This increase will apply to wines with an ABV between 11.5% and 14.5%. Wines with an ABV above 15% will see a duty increase of £0.97 (+44%) per 75cl bottle, and this increase gets bigger the higher the alcohol percentage – duty on fortified wines of +20% ABV will go up by £1.30 to £4.28 per 75cl bottle. On the other hand, wine under 11.5% ABV will be treated more favourably. Duty on wine at 10% ABV, for example, will be £0.09 less than the current rate (at £2.14 per 75cl bottle). Further abolishment of separate duty rates for sparkling and still wine