Alcohol duty fuels sales decline: Overview
- UK wine volumes fell 8% and spirits volumes declined 15% compared with 2023 levels.
- The WSTA says alcohol duty rises since 2023 have increased costs for businesses and consumers.
- Duty on wine and spirits has risen significantly following reforms linked to alcohol strength.
- The trade body is calling on the government to freeze or cut alcohol duty at the Autumn Budget.
- The WSTA warns further tax increases could add pressure on the sector and risk more business closures.
UK wine and spirits sales have fallen since 2023, with the Wine and Spirit Trade Association (WSTA) calling on the government to cut alcohol duty in the upcoming Autumn Budget.
According to NielsenIQ off-trade retail measurement data cited by the WSTA, wine volumes declined by 8% and spirits volumes fell by 15% over the 52 weeks to the end of March 2026, compared with the same period in 2023.
The trade body is now urging the government to halt further duty increases, arguing that successive rises have added to pressure on drinks businesses and consumers.
Alcohol duty increases add to cost pressures
The current alcohol duty system came into effect on 1 August 2023, linking wine duty to alcohol strength. Two further duty increases followed, in February 2025 and February 2026, adding to costs for drinks businesses and consumers.
The WSTA estimates that, over three and a half years, duty on a 14.5% ABV bottle of wine will have increased by £1.20, while duty on a 37.5% ABV bottle of gin will have risen by £1.38. Including VAT, these increases equate to £1.35 and £1.65 respectively on retail prices.
The trade body also claims that a 14.5% ABV red wine has become the highest-taxed wine in Europe under the revised system, and that duty on spirits and bottled beer has risen by more than 18% since the 2023 changes.
WSTA calls for tax cuts in Autumn Budget
The trade body is urging the government to freeze or cut alcohol duty rather than introduce further increases in line with inflation.
Miles Beale, chief executive of the WSTA, said: “Wine and spirit producers and retailers across the country are struggling to absorb the hefty duty increases and consumers can’t afford them.”
Beale argued that further tax rises could put additional pressure on businesses, warning that another increase could result in more closures.
The WSTA also pointed to rising business rates and employment costs as additional pressures on the sector. It argues that cutting or freezing duty could support sales, reduce costs for consumers and increase revenue for the Treasury.
