Chancellor Rachel Reeves has confirmed an inflationary duty rise for alcohol from February 1, 2026 – continuing what has been described as a “doom loop” for trade and consumers.

Duty is rising in line with the Retail Price Index, which stands at 3.66%. That translates at about 11p on a bottle of Prosecco, 13p on a typical red wine and 38p on a bottle of spirits, according to the Wine & Spirit Trade Association.

When the duty increases announced in the budget come into effect next year, wine and spirit prices will have risen by almost £1 a bottle over 12 months, the WSTA says, “taking into account the ongoing burden of duty rises, the new waste packaging tax and VAT”.

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 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.”

He added: “The government’s typically disappointing and shortsighted decision to raise alcohol duty yet again will only prolong the doom loop. Despite the OBR at last acknowledging higher prices lead to a decline in receipts, the government fails to recognise that its own policy is driving up those prices.

“Amazingly, the Treasury continues to press ahead with its ill-founded plan to pile further duty increases on alcohol.”