WSTA calls for Government to rule out duty hike

By Oliver Catchpole

Published: 23 October, 2025

The Wine and Spirit Trade Association (WSTA) is calling on the government to get rid of plans to raise alcohol duty, to avoid further price rises that will fuel inflation.

At present, the government plans to increase duty by RPI – an estimated 4.5% – in next month’s Budget.

The WSTA predicts that this will add 14p to a bottle of Prosecco, 16p to a bottle of red wine and 47p to a bottle of gin.

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Businesses have seen costs rise throughout this year, with tax hikes in February, as well as the introduction of EPR legislation. This is on top of rises in National Insurance Contributions (NICs) and the minimum wage, along with reduced business rates relief.

The WSTA has called this a “perfect storm of crippling costs”.

It forecasts that duty increases due to take effect on 1 February 2026 and new EPR costs (and VAT) will have added almost a pound to a 14.5% bottle of wine, or 37.5% bottle of gin, since January 2025 (assuming the wine is in a 500g glass bottle, and the gin in a 600g bottle).

These price rises have also seen a drop in alcohol sales and a reduction in Treasury revenue.

According to a poll commissioned by the WSTA and carried out by YouGov, 72% of those that drink alcohol said that the price of alcohol in shops has increased either a lot or somewhat in the last 12 months, while 74% say the price of alcohol has increased a lot or somewhat in restaurants and pubs.

Of those who reported noticing alcohol price increases, 37% said that they are less likely to buy alcohol in shops, with that figure increasing to 55% for the on-trade.

Miles Beale, chief executive of the WSTA (pictured), said: "We are calling on Rachel Reeves to stop pouring away Treasury funds and scrap crippling duty hikes. Alcohol sales have been in steady decline since 2023, following the largest alcohol tax hike for 50 years.

“The only way to break the cycle of tax duty increases penalising cash-strapped consumers, depleting Treasury funds and fuelling inflation is to freeze excise duty on wines and spirits at the November Budget."

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