Families paid 50% tax on Christmas booze bill

British families spent an average of £170 on booze over Christmas, but more than half of their bill was comprised of tax.

Tax makes up the majority of the price of the average festive alcohol shop

According to a snapshot review of the market by the Wine and Spirit Trade Association (WSTA), the average UK family bought a whopping 24 cans of beer, 12 cans of cider, two bottles of port, five bottles of wine, two bottles of Champagne, two bottles of sparkling wine and three bottles of spirits.

An average shop comprised of the above would have set families back £171.08. However, the WSTA claims that as 53% of the cost goes straight to the Chancellor, a 2% reduction in alcohol tax would significantly benefit British families when it comes to the annual festive shop.

Miles Beale, chief executive of the WSTA, said: “These figures are staggering. By making a modest cut in duty on wine and spirits at the next Budget the Chancellor would provide welcome relief for the UK public and hopefully mean that, next Christmas, consumers’ money will be able to go that little bit further.”

The report comes in the wake of the launch of a joint campaign, titled Drop the Duty, between the WSTA and the Scotch Whisky Association (SWA), to cut the rate of alcohol tax by 2% in the next Budget.

According to the WSTA, the cost of an equivalent shop in France, where tax accounts for just 30%, came in at £128.58, representing a saving of £42.50 compared to the UK.

Jonathan Isaby, chief executive of the TaxPayers’ Alliance, said: “This is a shocking report and reveals just how hard British consumers are hit compared to their continental neighbours.

“Politicians always talk about the cost of living crisis, but they make it far worse by levying too-high taxes on everyday goods. December is expensive enough for hard-pressed families up and down the UK without the Chancellor taking a Christmas bonus on festive tipples. It’s time to drop the duty.”

The report also claims the cost of the same average festive alcohol basket has increased by 19% in the last four years.