How much will spirits cost if duty rises?

This is how much spirits will cost in the UK from 1 August after the introduction of a new duty regime, and an estimated inflationary rise.

The UK chancellor, Jeremy Hunt, is due to announce the spring budget tomorrow (15 March). Wine and spirits producers are braced for potential alcohol duty hikes, and have been campaigning for a freeze to support businesses.

On 1 August, the UK government is due to introduce a new alcohol tax system, which will tax alcohol according to strength.

Alcohol duty is currently frozen until 1 August – but Hunt could choose to end this and instead increase duty in line with inflation.

Trade body the Wine and Spirit Trade Association (WSTA) warned this would double the tax for wine. Spirits, the highest-taxed alcoholic drink, would also be affected. For example, a 10% increase would add a further 75p to a bottle of vodka.

Miles Beale, chief executive of the WSTA, said: “If alcohol duty rates went up by RPI, this will be a crippling blow to the UK alcohol industry and consumers who will have to pay the price for tax rises during a cost-of-living crisis.”

The WSTA gave examples of how the duty adjustment planned for 1 August, plus a 10% increase, would affect specific spirits.

Tax paid on a bottle of vodka at 37.5% ABV would go from £7.54 to £8.30 (US$9 to US$10) from August (a 10% increase).

For a 700ml bottle of spirit-based cream liqueur at 17% ABV, duty would drop slightly from £3.43 to £3.39 (US$4.17 to US$4.12).

A pre-mixed, 250ml G&T at 5% ABV would go from 36p to 31p (US$0.44 to US$0.38).

Trade body the Scotch Whisky Association (SWA) has also been urging the chancellor to freeze alcohol duty. A recent survey commissioned by the SWA, showed almost a third of voters would be less likely to support the Conservative party in the next election if alcohol duty is increased in the spring budget.