Wines will be taxed more the stronger they get, rather than by the volume of liquid as they are under the current system. The challenge for wine producers may be even greater, given the introduction of a new system of calculating alcohol duties on the same day. "With business costs set to soar, it's impossible to see how brewers can carry on exactly as they are whilst still avoiding customers paying over the odds for their beer," said Emma McClarkin, chief executive of the British Beer and Pub Association.Įnding the duty freeze will cost the industry £225m "at an already challenging time", with brewers facing "mounting price increases across supply chains" in the last two years, she said. Taxation on bottled beers and spirits is set to increase by 10%, costing the industry £225m, trade associations have said.
Some brewers are reportedly considering reducing the strength of beer to sidestep costs, while there are fears some wines may disappear from the shelves altogether.Īlcohol duty will be unfrozen on 1 August for the first time since the beginning of the pandemic and Chancellor Jeremy Hunt confirmed in March that it will increase in line with inflation.
Enjoying a drink in the summer sun may soon become more costly, as brewers and winemakers warn changes to alcohol taxation will increase the price of bottled beers, spirits and wines.
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