UK alcohol duty to rise in February 2027, adding up to 15p per bottle of wine

Wine duty rises with alcoholic strength

HM Revenue & Customs published the new rates following the Autumn Budget of Monday, November 2. They take effect on February 1, 2027, and apply to wine, beer and spirits under the UK system that calculates duty according to the amount of pure alcohol in a drink. Consequently, stronger products face larger increases even when bottle sizes are identical.¹

For wine between 8.5% and 22% ABV, duty will increase by about 4.5%, from £30.62 to £32.01 per litre of pure alcohol. On a standard 75cl bottle, duty on an 11% ABV wine will rise from £2.53 to £2.64, an increase of 11p. At 12.5%, it will go from £2.87 to £3.00, up 13p; at 13.5%, from £3.10 to £3.24, up 14p; and at 14.5%, from £3.33 to £3.48, up 15p.¹

Shelf-price effects could exceed the duty increase

The government’s calculations concern duty rather than final retail prices. Retailers, importers and producers may absorb some of the additional cost or pass it on to consumers. Because the 20% value-added tax is charged on the selling price including duty, the eventual increase can be greater than the duty change alone. If fully passed through with VAT, the price of a 12.5% ABV bottle could rise by about 16p.¹

The change will also affect overseas producers and exporters because the UK is a major market for imported wine. It adds pressure to prices, margins and demand, with higher-alcohol wines bearing larger duty increases. This may have a greater effect on wines from warmer regions, where grapes naturally tend to produce higher alcohol levels.¹

Higher rates for spirits

Duty on drinks above 22% ABV will rise from £33.99 to £35.54 per litre of pure alcohol. For a standard 70cl bottle of gin or Scotch whisky at 40% ABV, duty will increase by 43.4p, from approximately £9.52 to £9.95. A 70cl spirit at 43% ABV will incur an additional 46.7p.¹

If the full increase for a 40% ABV bottle is passed to consumers and VAT is applied, its final price could rise by about 52p. This would be in addition to any increases arising from production, energy, transport, wages or distribution costs.¹

Beer and draught relief

Standard duty on beer between 3.5% and 8.5% ABV will increase from £22.58 to £23.61 per litre of pure alcohol. For a 568ml pint at 4.5% ABV, this represents an additional 2.63p in duty, or roughly 3p.¹

Qualifying draught beer will retain a lower rate than packaged beer, although that rate will rise from £19.45 to £20.34 per litre of pure alcohol. Duty on a qualifying 568ml pint at 4.5% ABV will therefore increase by about 2.27p. The relief means eligible cask and keg beer served in pubs remains taxed less heavily than the equivalent product sold in bottles or cans.¹

Industry criticism and hospitality support

Drinks-industry groups criticized the decision. The Scotch Whisky Association described it as the fourth consecutive increase in spirits duty. Chief executive Mark Kent said the change would raise the tax share of the average bottle of Scotch whisky to 74%.¹

The Wine and Spirit Trade Association, which had asked the government to freeze duty before the Budget, also opposed the rise. Chief executive Miles Beale said companies already faced inflation and pressure on household budgets when the government imposed the further increase.¹

Elsewhere in the Budget, the government announced additional business-rates relief for qualifying pubs, social clubs and live-music venues in England, as well as changes to Small Producer Relief. Despite those measures, alcohol sellers will begin 2027 with higher tax liabilities across much of the market.¹

More complex decisions for wine merchants

For wine merchants, the increase reinforces the consequences of Britain’s detailed strength-based system: two bottles of equal size can attract noticeably different taxes solely because of their alcoholic strength. This complicates pricing, inventory choices and promotional planning for supermarkets, independent retailers, restaurants and importers, particularly where small price changes can affect demand.¹