Chancellor Rachel Reeves has delivered a sobering blow to pubs, shops, and drinkers across the UK, confirming that alcohol duty will increase again from February 2026 as part of her Autumn Budget.
What the Duty Increase Means for Your Wallet
The Chancellor's announcement means the tax on alcoholic drinks will rise in line with the Retail Price Index (RPI) measure of inflation, which stands at 3.66 per cent. This duty is applied at the point of production or import and is factored into the final price consumers pay on supermarket shelves or at the bar.
According to analysis from the Wine and Spirit Trade Association (WSTA), the hike will add significant pence to popular products. The trade body estimates the increase will mean:
- An extra 11p on a bottle of Prosecco.
- An additional 13p on a bottle of red wine.
- A rise of 38p for a standard bottle of gin.
Industry Reaction: A 'Death by a Thousand Cuts'
The move has been met with fierce criticism from business leaders in the retail and hospitality sectors, who warn of the cumulative strain of repeated tax increases.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association, told the Mirror: “This Budget has been dubbed a death by a thousand cuts, and for wine and spirit businesses those cuts run deep. Our members are still reeling from the tax hikes introduced in February, and the additional burden of the costly new glass tax.”
Echoing this sentiment, John Colley, executive chair and CEO of Majestic Wine Group, stated: “It is bitterly disappointing that the Government has again chosen to ignore warnings from businesses across the wine, retail and hospitality sectors by pressing ahead with what will be another damaging increase in alcohol duty. The decisions the Chancellor has made today will only hamper investment, which is critical to driving growth in our sector.”
Full List of Drink Price Changes from February 2026
Here is how the duty rise is expected to affect the shelf price of common drinks, based on current examples:
- Red Wine (Merlot) 13.5% ABV, 75cl - £8.50 now; £8.63 from February.
- White Wine (Sauvignon Blanc) 11% ABV, 75cl - £8.25 now; £8.35 from February.
- Gin, 37.5% ABV, 70cl - £19.00 now; £19.38 from February.
- Scotch Whisky, 40% ABV, 70cl - £18.00 now; £18.39 from February.
- Prosecco, 11% ABV, 75cl - £12.50 now; £12.61 from February.
- Lager, 4.6% ABV, 4x330 ml - £6.00 now; £6.06 from February.
- Cider, 4.5% ABV, 4x330ml - £5.25 now; £5.27 from February.
- Vodka and Diet Cola RTD, 5% ABV, 25cl - £2.15 now; £2.16 from February.
The duty increase marks a continuation of a trend seen over recent years, placing further financial pressure on both consumers and an industry still recovering from previous economic challenges.
