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UK Alcohol Duty Rises 3.66% from February 1 Affecting Beer, Wine, and Spirits

The 3.66% alcohol duty rise will increase taxes on beer, wine, and spirits, with producers facing higher costs that are expected to push retail prices up, industry leaders say.

  • On Sunday, February 1, alcohol duty increases by 3.66%, with the levy applied directly to alcohol producers, the Treasury confirmed.
  • A Treasury spokesman said: `For too long, the economy hasn't worked for working people, and cost-of-living pressures still bear down. That's why we are determined to help bring costs down for everyone. 'They concluded: 'Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day.'`
  • For beer, the rise affects both pubs and supermarkets, with a pint possibly rising by 2p, and brewers facing a £130m industry cost, according to Emma McClarkin.
  • Wine and spirits leaders warned firms `have no choice but to increase prices` to stay afloat, while the UK Spirits Alliance urged Chancellor Rachel Reeves to review duty and end `spirits discrimination`.
  • Some brewers have cut ABV to reduce duty, with Foster's and other beer brands lowering strength to 3.4% in recent months while pubs and venues won a 15% business rates discount.
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gov.im broke the news in on Friday, January 30, 2026.
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