WSTA highlights cost of Budget to drinks trade

By Andrew Catchpole

Published: 27 November, 2025

In the wake of the Budget, the Wine & Spirit Trade Association (WSTA) has released a table (below) revealing just how much the duty increases will impact prices for the consumer, further dampening demand for wines and spirits.

Describing the Government’s decision to increase alcohol duty by RPI in harsh terms, the trade body called the move a “typically disappointing and shortsighted decision”, and one that would perpetuate the economy’s “doom loop”, further depressing both HMRC revenues while damaging British businesses.

“This Budget has been dubbed a death by a thousand cuts, and for wine and spirit businesses those cuts run deep. Our members are still reeling from the tax hikes introduced in February, and the additional burden of the costly new glass tax, known as EPR.

Read more: UK drinks industry despondent after Budget duty hike

“Coupled with rises in National Insurance, increases to the minimum wage and business rates, it is no surprise that wine and spirit producers - along with our beleaguered hospitality sector - feel under sustained attack,” said Miles Beale, chief executive of the WSTA.”

Beale added that even though the OBR (Office for Budget Responsibility) has now acknowledged that higher prices lead to a decline in receipts, “the Government fails to recognise that its own policy is driving up those prices”.

The WSTA also highlighted that the OBR has had to revise down its estimates for alcohol duty receipts, with that take forecast to be £700 million lower across 2025-2026 than 2024-2025, and some £1.1 billion lower than the OBR forecast in March 2025.

Table: Examples of duty increases for popular mid-priced brands available in a UK supermarket based on a 3.66% RPI increase – as VAT is levied on duty, the price increase is greater than just the duty increase.

John Colley, Executive Chair and CEO of Majestic Wine Group, added his voice to the general disappointment felt by the drinks and hospitality sectors: “It is bitterly disappointing that the Government has again chosen to ignore warnings from businesses across the wine, retail and hospitality sectors by pressing ahead with what will be another damaging increase in alcohol duty.

“The retail and hospitality sectors are already under immense pressure, yet the Government continues to dismiss our concerns and increase the tax burden on businesses. The decisions the Chancellor has made today will only hamper investment, which is critical to driving growth in our sector. We would urge the Government to start listening to the WSTA, the BRC and UK Hospitality, and engage with them in a meaningful way that creates growth opportunities for businesses and our economy.”

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