UK chancellor may raise alcohol duty by 4.5%, sparking industry warnings over revenue loss and price hikes.

Ahead of the UK’s autumn budget, Chancellor Rachel Reeves may raise alcohol duty by up to 4.5%, potentially increasing prices for consumers, with a 70cl bottle of gin rising by 47p and whisky by 50p. The proposed increase follows previous hikes and comes amid concerns that alcohol taxes contribute to inflation—accounting for £3 of every £100 in price rises through August 2025. Industry groups warn that each 1% duty rise raises government borrowing costs by £90 million and could reduce revenue, citing a 17% drop in spirits duty receipts in September. With inflation at 3.8% and economic growth stagnant, the sector urges a freeze to support businesses, stabilize prices, and protect public finances.