Chancellor Rachel Reeves has unveiled an Autumn Budget that will see the cost of wine, beer, and spirits increase for consumers across the UK.
What the Budget Means for Your Wallet
The key announcement for everyday spending is that alcohol duty will rise in line with inflation. This means the tax on your favourite tipple will be revised upwards using the Retail Price Index in February 2026. The government states this is to maintain the real-terms price of alcohol, but it will inevitably lead to higher prices at the supermarket and the pub.
In a move that goes further, tobacco duty will rise above the rate of inflation. The Budget also confirmed plans for a new duty on vapes, as highlighted by consumer champion Martin Lewis on X.
Industry Reaction: A 'Death by a Thousand Cuts'
The decision has been met with strong criticism from the drinks industry. Miles Beale, the Chief Executive of the Wine and Spirit Trade Association (WSTA), did not hold back in his assessment.
He described the Budget as a "death by a thousand cuts" for wine and spirit businesses. Beale pointed out that members are still recovering from tax hikes introduced earlier in the year and are now facing the additional burden of the new glass tax (Extended Producer Responsibility).
"Coupled with rises in National Insurance, increases to the minimum wage and business rates, it is no surprise that wine and spirit producers feel under sustained attack," Beale stated.
The Wider Economic Impact
The government has framed these duty rises as a necessary measure to help tackle the £40 billion black hole in the public finances, which it attributes to the previous Conservative administration.
However, the WSTA warns that this policy is counterproductive. They argue that higher prices lead to a decline in sales, which in turn reduces Treasury receipts. The association forecasts that receipts will be £600 million lower than last year and £1 billion lower than was forecast in March.
Beale concluded that the government's "shortsighted decision" will only prolong a "doom loop" where British businesses suffer, consumers pay more, and the Treasury ultimately collects less money.
