UK raises alcohol duties by 4.55% in Autumn Budget
The Retail Price Index-linked increase was announced on 28 October 2026, prompting criticism from wine trade bodies despite separate support for smaller hospitality operators and beer producers.
The UK government announced a 4.55% increase in alcohol duties in its Autumn Budget on Wednesday, 28 October 2026. The rise is linked to the Retail Price Index and was presented alongside business-rates relief for smaller hospitality operators.1
The Wine & Spirit Trade Association estimated that the measure would add about 14p to a bottle of Prosecco. Its chief executive, Miles Beale, said businesses would struggle to absorb the increase during a cost-of-living squeeze and argued that both companies and consumers would bear the cost.1
Wine producers’ response
WineGB also criticised the Budget. Policy director Vincent McGovern said it offered no support to the British wine industry, despite proposals submitted by the organisation. These included relief for wine tourism to encourage rural investment, a different approach to wine duty and changes to Small Producer Relief.1
The Scotch Whisky Association and parts of the licensed trade also opposed the package. Their criticism contrasted with the response from the Society of Independent Brewers and Associates, which welcomed the expansion of Small Producer Relief for smaller breweries.1
A divided hospitality sector
Hospitality representatives gave a mixed assessment. UK Hospitality welcomed business-rates changes for smaller operators and a freeze for the rest of the sector in England, while continuing to call for further tax measures. Other hotel and restaurant operators welcomed the rates changes but noted that the Budget did not alter VAT for hospitality.1
Sources
Written by the Dionysus editors from the sources above.
