Booze costs will rise from TOMORROW in blow for millions celebrating end of dry Jan – is your favourite tipple affected?
ALCOHOL prices will rise from tomorrow affecting millions of Brits celebrating the end of dry January.
The boozy blow comes after Rachel Reeves announced a rise in alcohol duty in the Autumn budget last year.
Those who fancy a bottle of wine to keep the winter blues away might have to fork out an extra 54p per bottle - this only applies to wine at 14.5% ABV.
A more detailed tax system based on strength is set to be introduced soon.
Gin fans are also in the firing line with customers having to splash out an extra 32p per bottle.
This new strength-based tax system will also affect gins.
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The Retail Price Index aligns with the alcohol tax, at 3.6per cent, which will affect gins and wines.
It's bad news for anyone in the mood for a Negroni or a Chardonnay but that doesn't mean everyone in the pub is commiserating.
Those whose go-to order is a pint might actually be saving some money on their chosen tipple.
Duty on draught products will be cut by 1.7per cent which tots up to around a penny off per pint.
That means if your local serves a five-pound pint, it'll feel like you're getting pint number 501 on the house.
Alcohol duty is a tax that the government puts on making, bringing in, or selling alcoholic drinks.
Generally when alcohol duty rises, manufacturers are forced to raise the price to consumers so they are still able to keep a profit.
It's supposed to raise money for the government while discouraging people from drinking too much.
This is why there is also a tax on smoking, sugary drinks, and gambling.
NEW WASTE TAX
These aren't the only changes being made - The Wine and Spirit Trade Association has warned of price hikes in the near future.
Waste packaging recycling fees are coming our way in April which will affect the cost of bottles.
They came into legislation in December 2024 and aim to shift the cost of household recycling from councils back onto the companies using the packaging.
This should hopefully improve the quality of materials used, reducing packaging waste and litter.
Glass beverage packing will have higher fees than other materials because the new tax is based on weight.
This means there will be an extra 12p added to a bottle of wine and an additional 18p for a bottle of spirits.
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These taxes will affect the manufacturer rather than the customers directly but tax increases tend to trickle down to the price tag.
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HOSPITALITY IN PERIL
MANY hospitality and pub groups have warned they could be forced to raise prices following the recent Budget announced by Labour Chancellor Rachel Reeves.
Last week, the head of Revolution Bar said the move would have a very "damaging impact" on the group.
In a statement to investors, chief Rob Pitcher said the reduction in the National Insurance thresholds would be "regressive" and "offer no clear pathway for economic growth within the hospitality sector".
The chain closed 25 sites last year as part of a restructuring plan, blaming Brits spending less on nights out for its troubles.
Chief executive officer of Fuller's, Simon Emeny, previously told The Sun the price of beers at its hotels and boozers would likely rise by 10p.
Wetherspoons' boss Tim Martin also said the hike in increased staffing costs had a “significantly bigger impact on pub and restaurant companies than supermarkets”.
He said in Spoons' results statement: “Wetherspoon therefore calls upon Sir Keir Starmer to redress this imbalance, thereby striking a blow for tax equality and ending discrimination in favour of dull (yawn, yawn) dinner parties.”
Chancellor Rachel Reeves said during her autumn statement she would raise employers' National Insurance contributions (NICs).
She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.
It's estimated that the move will raise £25billion - the equivalent of around £800 per employee for each firm.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
Emma McClarkin, chief of the British Beer and Pub Association, told The Sun these changes leave hospitality businesses on a "cliff edge".
The impact of the budget alongside changes to tax could leave the sector with a £650million loss.
She said: "Brewers and pubs pour billions into the economy and Treasury, support more than a million jobs and are a cornerstone of the community.
"However, we face a cliff edge in April when a staggering £650m extra in costs will kick in, including the ending of vital business rates relief, new employer costs, and the beer bottle tax."
The industry leader said these changes could "lead to businesses being forced to pass on extra costs to customers".