Aneira Davies
Social and newsletter writerIn today's (Wednesday 15 March) budget, Chancellor Jeremy Hunt has set out new plans to tax alcohol. Here's how it will affect you
There's bad news for parents who enjoy a glass of wine at the end of a long day – as the price of a bottle is set to increase by up to 44p from August.
Chancellor Jeremy Hunt has announced the biggest price rise in decades in today's (15 March 2023) Budget, as he said that alcohol duty will rise in line with double-digit inflation.
In December, the Chancellor extended the alcohol duty freeze until 1 August, but added, in the Budget, that alcohol duty will go up in line with inflation after that date.
He said:
'My penultimate cost of living measure concerns one of our other most treasured community institutions – the great British pub. In December, I extended the alcohol duty freeze until 1st August, after which, duties will go up in line with inflation in the usual way'.
However, he announced that he would 'significantly increase the generosity of draught relief' after 1 August, meaning that the duty on draught products in pubs will be up to 11% lower than the duty in supermarkets, in what he called a 'Brexit pubs guarantee'.
He said:
'British ale is warm but the duty on a pint is frozen.'
This news means it'll set wine drinkers back an extra 9% in duty taxes on 90% of wines sold, the Wine and Spirits Trade Association (WSTA) has warned, with an overall rise of 20% on each bottle.
The WSTA said this will be the biggest single increase since rates were first set, nearly 50 years ago.
After the announcement, Miles Beale, the WSTA's Chief Executive, Tweeted:
'@hmtreasury has not just published new rates. It’s a 10.1% increase. After #Budget2023: 1) @Jeremy_Hunt continues to favour beer and cider (on-trade) 2) continue to penalise spirits: highest w/ 10% increase 3) wine gets 20% increase - *biggest increase since 1975* @wstauk'
What other drinks will be affected?
While wine drinkers will be affected by the price hike, the prices of other alcohol will increase too.
Prices of port will rise by £1.29 a bottle and sherry will rise by 97p.
Bad news for Santa at Christmas!
Other drinks, meanwhile, will rise by 10%, with a 75cl bottle of vodka increasing by 75p.
However, some pre-mixed drinks may actually be cheaper than before, with 250ml cans of gin and tonic costing 5p less and sparkling wine 19p cheaper.
Ahead of the Budget at 12.30pm, Miles Beale added: 'The UK’s 33 million wine drinkers are blissfully unaware that the price of wine is set to rocket this summer.
'If the Chancellor goes ahead with a two-pronged attack on wine drinkers by adding an inflationary duty increase on top of the stealth tax already applied when the Government’s new alcohol duty regime kicks in this summer, duty alone will add 44p to a bottle of still wine.
'If alcohol duty rates went up by RPI, this will be a crippling blow to the UK alcohol industry and consumers who will have to pay the price for tax rises during a cost-of-living crisis.'
What else was announced in today's budget?
From energy bills to childcare costs, the Spring Budget impacts families in several areas of life.
It came the same day teachers are walking out across England and Wales in strike action over pay.
We’ve rounded up how the budget affects YOU, your family and your household finances. You can read more here.
There was also a big announcement about free childcare for 1 and 2 year olds. Read more here .
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