Beer prices are set to increase after Rachel Reeves announced last month that she would raise alcohol duty in line with inflation. The levy normally rises in line with the Retail Price Index from September, which was 4.5%. The Wine and Spirit Trade Association (WSTA) said RPI set at 3.66% would see duty go up by 11p on a bottle of Prosecco, 13p on a bottle of red wine and 38p for a bottle of gin from February 1.
When the duty increases kick in next year, wine and spirit prices will have risen by almost £1 a bottle in a year, taking into account the ongoing burden of duty rises, the new waste packaging tax and VAT. Alcohol prices are up 5.8% on last year, according to official figures. Last year, drinkers faced a 3.6% hike in alcohol duty, adding 54p to a bottle of wine and gin by 32p – while draught duty was cut by 1.7% – or a penny off a pint – in the 2024 Budget.
Which pints will be more pricey?
Now, it has been announced that Amstel, Birra Moretti, Old Mout cider, John Smith’s Extra Smooth and Inch’s cider will be 2.7% more expensive in the new year. Heineken 0.0% will also go up.
A spokesperson for Heineken, the global brewery, told the Morning Advertiser: “We know pubs are still shouldering significant cost pressures.
“The operating environment remains challenging, with inflationary inputs such as employer taxes and the introduction of the UK’s Extended Producer Responsibility (EPR) packaging scheme adding to the burden.
“We will continue to invest in portfolio and services that help pubs grow while remaining transparent about any future Government duty changes, which will be passed on in the usual way.”
The firm insisted the hikes were “as low as possible” and that it is working to support pubs with “targeted savings and price certainty”.
However, Irish stout Murphy’s will remain at the same price, The Sun highlighted.
Fosters will also be cheaper, albeit with a lower alcohol content.
