Budget 2024: Price of wine and spirits increases but pints will be a penny cheaper
30th October 2024
Chancellor Rachel Reeves has just announced the rise in prices of wine and spirits, however, pints in pubs will cost a penny less.
Autumn Budget 2024 includes an increase in alcohol duty rates on non-draught drinks in line with RPI figure for September this year, which was 2.7%. The increase will come into force on 1st February 2025.
On the good side, draught duty on alcoholic drinks below 8.5% will be cut by 1.7%. Chancellor said today that people will see “a penny off a pint in the pub”.
MP Reeves added: “To recognise the economic and cultural importance of British pubs, and commitment to supporting smaller brewers, the government is cutting alcohol duty on draught products.”
August 2023 marked the largest increase in duty on wine and spirits in almost 50 years, adding 20% to excise duty on more than 85% of all wines on the UK market and more than 10% to duty paid on full strength spirits.
Alcohol duty is paid by manufacturers when they make their products, however, they usually pass it onto consumers by increasing prices.
Nation of pub drinkers
The Institute of Alcohol Studies commented on the Budget news: “We welcome the decision to specifically target cheap, supermarket alcohol in the Budget, by raising off-trade alcohol duty by inflation. This will help narrow the widening gap in affordability between pub and supermarket alcohol.
“With nearly 80% of alcohol now consumed off-trade, we are no longer a nation of pub drinkers.
“There are both public health and economic reasons to move people back to drinking in pubs and not at home. In many areas, pubs are central to community life, promoting social cohesion in ways that solitary, home drinking cannot.
“People also tend to consume less alcohol in the on-trade, reducing overall alcohol consumption. And economically, hospitality requires far more employment than the off-trade, so could boost the economy.
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