Alcohol prices in pubs and supermarkets to be pushed up by perfect storm of rule changes
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ALCOHOL prices in pubs and supermarkets to be pushed up by a perfect storm of rule changes. Changes to tax on alcohol, packaging and employers are set to hit drinkers in the pocket. Alcohol duty rates in the UK will rise on February 1, 2025. Alcohol duty typically goes up in line with inflation each year, but two years ago it was frozen until February 2025.
![[Person selecting a glass of beer from a tray of beers.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2g26tcf-man-selecting-glass-beer-871918265.jpg?strip=all&w=960)
It means producers will have to hike the price of beer, wine and spirits to offset raised levies. Alcohol duty is charged on all drinks which are more than 1.2% ABV strength, either at the point of production or when they are imported. Usually, alcohol duty rises each year in line with inflation unless the Chancellor chooses to freeze it.
Higher taxes mean higher prices as companies pass on the rise to customers. It comes as Heineken said it would hike the price of its draught beer by an average of 2.97% for pubs from next month because of the change. The hike in the wholesale cost of beer could be passed on to customers if pubs, already under-pressure, cannot absorb the additional costs themselves.
It means the price increase could affect the cost of beers on tap such as Birra Moretti, Heineken, Fosters and Tiger. The major brewer said the change will come into force on all deliveries from February 1, 2025. And it's not just beer drinkers which can expect to feel the pain, wine and spirit lovers are also at risk of paying more.
