Drinks prices soar as duty hikes loom

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Sustained attack: Drinks prices soar as duty hikes loom

The cost of several pub staples have increased in the past year, with the price of a pint alone jumping 4%.

Analysis of data from the Office for National Statistics (ONS) by The Morning Advertiser (The MA) showed the average price of cola, beer, cider, wine, vodka, gin and whisky all rose by between 2% and 5% in the year to October 2025.

Both the cost of draught lager and bitter increased during the 12-month period. The average price of a pint of draught lager (3.4% to 4.2% ABV) jumped from £4.39 to £4.51 – an increase of 3% – while a pint of draught bitter saw a 4% hike, from £4.13 in 2024 to £4.29.

A pint of cider between 4.5% and 5.5% ABV rose by 3%, from £4.72 to £4.88. However, the cost of a bottle of wine saw the biggest uptick, with prices soaring 5%, from £23.38 to £24.55 in pubs.

The spirits category was also hit by increasing prices. A 30ml measure of whisky saw a 2% jump, from £3.92 to £3.99, while 30ml measures of vodka and gin saw 4% increases, from £4.24 to £4.40 and from £4.20 to £4.37 respectively.

Penalise success

Soft drinks were also not left unscathed, with the price of lemonade and cola on tap, the most popular soft drinks options in pubs, rising from £2.62 in 2024 to £2.73 this year, an increase of 4%.

Duty is expected to increase in line with inflation from February next year, sparking concerns of even more price hikes for pubs in 2026.

The Office for Budget Responsibility (OBR) reported alcohol duty receipts were expected to raise £12bn in 2025 and 2026, a 5.1% hike from 2024-25.

It added receipts were estimated to increase by 3.4% each year following, reaching £14bn by 2030-31.

Moreover, hospitality businesses would need to sell an extra 29.5m pints every day to cover the higher wage bill created by the Budget, according to figures from Access Hospitality, with operators left with just 13p of profit per pint.

Warnings have already come in thick and fast from brewers across the sector, with independent breweries claiming the “terrible Budget" would “penalise success” and global brewer Asahi UK stating duty increases “would absolutely need to be passed on”.

Sustained attack

Trade organisations including the Campaign for Real Ale (CAMRA) and the Society for Independent Brewers & Associates (SIBA) have also called for targeted support for the brewing and hospitality sectors following the Budget.

Meanwhile, following the Budget, the Wine & Spirit Trade Association (WSTA) estimated a bottle of Prosecco would go up by 11p, 13p for red wine and 38p for a bottle of gin from 1 February next year with inflation set at 3.66%.

WSTA chief executive Miles Beale said: “Our members are still reeling from the tax hikes introduced in February, and the additional burden of the costly new EPR tax.

“Coupled with rises in national insurance, increases to the minimum wage and business rates, it is no surprise 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.”