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May 05, 2024

Will the alcohol price hike put you off buying booze? Vote in our poll

New alcohol duty changes come into place today in what has been described as the "biggest single alcohol duty increase in almost 50 years” Millions of Brits will be paying more for their supermarket

New alcohol duty changes come into place today in what has been described as the "biggest single alcohol duty increase in almost 50 years”

Millions of Brits will be paying more for their supermarket booze as new alcohol duty charges come into force today (August 1), under a plan established by Rishi Sunak and Jeremy Hunt.

Mr Sunak first announced the changes in 2021 - when he was the Chancellor - with alcohol duty rates expected to soar by 10.1%, in line with the September 2022 inflation figure. The aim of the new system is to encourage drinkers to cut back by taxing booze based on strength, rather than previous categories of wine, beer, spirits, and ciders.

Described as the “biggest single alcohol duty increase in almost 50 years”, the new method will see a 40% alcohol by volume (ABV) bottle of whiskey be taxed more than a 13% ABV bottle of wine.

According to the British Beer and Pub Association, ending the alcohol duty freeze will cost the industry around £225million. Industry experts at the Wine and Spirit Trade Association said the changes would particularly impact wine, as the unfreeze and shakeup could see taxes on a 75cl bottle rise by 20%.

This is the largest increase in wine duty since 1975 and could see the price of an average bottle of red or white wine bought in a supermarket rise by around 44p. The Metro reports that duty on a 18% cream sherry will go up from £2.98 to £3.85, with VAT adding up to a rise of more than £1 a bottle, while a bottle of port will go up by more than £1.50. The total tax on a bottle of gin or vodka will go up by around 90p.

In a statement to Sky News, Simon Stannard, director of policy at the Wine and Spirit Trade Association said: "Alcohol tax rises will only further fuel inflation. It will heap more misery on consumers. And it will damage British business, especially those in the hospitality supply chain, who are still trying to recover from the pandemic."

Colin Neill, chief executive, Hospitality Ulster, told ITV that said businesses may be forced to hike their alcohol prices as a result of the new system.

The Treasury highlighted that duty paid on drinks on tap in pubs will be up to 11p lower than the supermarket, adding that changes are designed to help pubs compete on a level playing field, as part of a new " Brexit Pubs Guarantee". The "Draught Relief" will cut alcohol duty by 9.2% for beer and cider and 23% for wines, spirits and other fermented products purchased in pubs.

With the new alcohol duty changes coming into place today, we want to know if the price hike will put YOU off buying booze? Vote in our poll HERE to have your say.

The Mirror will also be discussing the topic with you in the comments section below and you can join in! All you have to do is sign up, submit your comment, register your details and then you can take part.