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From Saturday, alcohol prices are set to rise due to an increase in tax and duties. The alcohol tax will see a 3.6 per cent hike in line with the Retail Price Index, and a new system taxing

wines and spirits based on their strength will also be introduced. This means gin enthusiasts will have to shell out an extra 32p per bottle, while wine with a 14.5% ABV (alcohol by volume)

will experience a price surge of 54p. These alterations to excise duty and the introduction of strength-based wine taxation were put into effect on August 1, 2023, but the Tory government

provided a temporary relief for wines with a strength between 11.5% and 14.5%, taxed at a flat rate of 12.5 per cent. The Wine and Spirit Trade Association (WSTA) has calculated that a 14.5%

ABV bottle of red wine would have seen a price increase of 98p in 18 months, considering the new duty hikes introduced in August 2023. The WSTA also warned about additional costs in April

due to waste packaging recycling fees, adding another 12p to a bottle of wine and 18p to a bottle of spirits. However, there's a silver lining for pub-goers as duty on draught products

or pints pulled in pubs will be reduced by 1.7 per cent, translating to a penny off a pint in the pub. These latest duty increases on wine and spirits follow the largest hikes in nearly half

a century in August 2023, which added 20 per cent to excise duty on more than 85 per cent of all wines on the UK market and more than 10 per cent to duty paid on full-strength spirits,

reports the Mirror. Alcohol duty, charged to manufacturers upon production of their beverages, typically hits spirits and wines harder than ciders and beers due to their higher alcohol

content. This tax is often passed down to consumers, with manufacturers determining the extent of price hikes. Recent HMRC statistics indicate a £209m drop in alcohol tax revenue for the

financial year ending December 2024, compared to the previous year. Miles Beale, Chief Executive of the Wine and Spirit Trade Association (WSTA), said: "The Government continues to

claim that the tax hikes are part of their big plan to plug the black hole in the public finances, but a series of record-breaking tax levies are doing the exact opposite. "There are no

winners under the UK's punishing alcohol tax regime higher duty rates mean people buy less which results in reduced income to the Exchequer, businesses are being squeezed and consumers

have to pay more. "Unfortunately, the pain of price hikes for consumers won't stop there as new taxes on waste packaging are coming round the corner. This seemingly never-ending

assault on wines and spirit businesses mean consumers need to brace themselves to pay substantially more for their favourite products." Hal Wilson, co-founder of Cambridge Wine

Merchants, expressed the strain on his business by saying: "In my business this feels like death by a thousand cuts, or even two thousand cuts. We sell over 2,000 different wines each

year and from February will need to know the precise ABV of each and every one before being able to calculate their full cost. "For each 0.1% ABV difference there is a different amount

of tax to be paid. Our range of wines has 48 different ABVs between 8.5% and 22%. This herculean bureaucratic exercise would not be necessary to carry out if the rates of tax weren't so

eye-wateringly high." Exchequer Secretary to the Treasury James Murray said: "Our pubs and brewers are an essential part the fabric of the UK and our brilliant high streets.

"Through draught relief, small producer relief, and expanding market access for smaller brewers, we will help boost sector growth and deliver our Plan for Change to put more money in

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Richard Naisby, who leads the Society of Independent Brewers and Associates, remarked: "The Government's increased investment in draught relief means that draught beer sold in our

community pubs has a lower rate of alcohol duty than beer sold in supermarkets and should encourage more people to support their local." "At the same time by going further on small

producer relief, the Government can help small breweries to compete and grow their businesses." _GET ALL THE LATEST AND BREAKING NEWS IN YORKSHIRE BY __SIGNING UP TO OUR NEWSLETTER

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