Measure

Alcohol duties

The measure

Duty rates of all alcoholic products produced or imported into the UK will increase in line with RPI. 

Draught Relief will increase from 5% to 9.2% for beer and cider draught products and from 20% to 23% for wine, spirit based and other fermented draught products.  

 

Who will be affected?

Producers, distributors, importers and/or consumers of beer, wine, spirits and cider.  

 

When will the measure come into effect?

These changes will take effect from 1 August 2023. 

Our view

The first part of this measure delays the RPI uprating of beer, wine, spirit and cider duties, as was anticipated following its announcement in December 2022. Following this, the increase in alcohol duty in line with inflation, the first time since the 2020 Autumn Statement, is likely to increase the cost to consumers of most alcoholic products, where these duty rate increases are passed on. 

The increase in draught relief is likely to be well received by the sector following disruptions caused by COVID-19.