Speaking in the House of Commons today (Wednesday 26 November) Rachel Reeves did not discuss alcohol duty.
It is therefore expected the rate, which has been linked to the Retail Price Index (RPI) since February 2025, will increase in line with inflation.
While the Budget did not mention alcohol duty, the OBR report that was leaked earlier today stated alcohol duty receipts were expected to raise £12bn in 2025 and 2026, a 5.1% on 2024/2025.
It added receipts were estimated to increase by 3.4% each year following, reaching £14bn by 2030-2031.
Deeply disappointing
Following the Budget, Campaign for Real Ale (CAMRA) chairman Ash Corbett-Collins said the consumer organisation was “deeply disappointed” with the hikes to alcohol duty.
He continued: “Instead of delivering a substantial cut in tax breweries pay on their beer going to be sold in pubs, the Chancellor has made the damaging choice to hike alcohol duties, including on draught beer and cider.
“As well as a cut in VAT and help with energy costs and Employer National Insurance contributions, Reeves should have taken action to recognise the benefits of drinking in community locals by slashing tax specifically on pints in pubs by up to 50% to help them compete with cheap supermarket alcohol.
“This extra hike in taxes on drinking in the pub can only risk more pubs and breweries being lost to the communities they serve.”
Ahead of the Budget, voices from the across the sector united in calling for targeted support for hospitality, including duty cuts.
Meanwhile, the Wine & Spirits Trade Association (WSTA) warned prices will rise for consumers and British businesses will suffer after today’s announcements.
Sustained attack
Chief executive Miles Beale said: “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.
“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.
The Government’s typically disappointing and short-sighted decision to raise alcohol duty yet again will only prolong the doom loop.”
Ahead of the Budget, the Society of Independent Brewers & Associates (SIBA) told The Morning Advertiser (The MA) expanding draught relief to 20% and wider support on employer costs and taxes were particularly important to empower indie brewers and improve consumer choice at the bar.
As part of the fiscal address, Reeves announced permanently lower business rates for hospitality, retail and leisure, free apprenticeship training for under-25s and increases to National Living Wage and the National Minimum Wage.
