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17th Mar 2023

Bottles of wine are going to be more expensive by this summer

Clodagh McKeon

It’s bad news for wine lovers.

We’re sorry we have to be the ones to tell you but, the cost of a bottle of wine is set to increase this coming summer.

The UK government has introduced a higher tax on alcohol in yesterday’s budget which means you’ll be paying more money for a bottle of wine if you’re in the UK.

Chancellor Jeremy Hunt confirmed that while duty on draught beer in pubs would be 11p lower than duty in supermarkets, the current freeze on alcohol duty would end on August 1st as expected.

He said: “In December, I extended the alcohol duty freeze until August 1, after which duties will go up in line with inflation in the usual way.

“But today, I will do something that was not possible when we were in the EU and significantly increase the generosity of Draught Relief so that from the 1st of August the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.”

The government is also set to change the way alcohol duty is calculated from August 2023.

Stronger drinks will be taxed more than weaker equivalents and duty on wine will now be charged at £24.77 per litre for wine between 3.5% and 8.5% ABV and £28.50 per litre for wines between 8.5% and 22% ABV.

Analysis from the Wine and Spirits Trade Association (WTSA) found that this would mean a 9% duty rise across 90% of wines.

The trade association estimated that these two policies mean bottles of wine will rise in price by up to 20% the equivalent of 44p based on the Treasury using a 10% inflation figure.

The WTSA also estimated that fortified wine would be especially hit by the double increase, with port set to rise by £1.29 a bottle and sherry by 97p a bottle.

In turn, the changes would mark the single biggest increase in wine since such rates were set nearly five decades ago.