Drinkers and smokers did not face any increases in sin taxes during the Spring Statement today. Rachel Reeves provided an economic update in Parliament, but due to the Chancellor’s commitment to only one major fiscal event annually, no significant tax adjustments were announced.
However, drinkers and smokers have experienced recent tax hikes. Alcohol duty went up by 3.66%, in line with RPI inflation, at the start of February. This resulted in an additional cost of 11p for a bottle of Prosecco, 14p for a bottle of red wine, and 38p for a bottle of gin, according to the Wine and Spirit Trade Association.
Last year, drinkers saw a 3.6% rise in alcohol duty, while draught duty decreased by 1.7%, equivalent to a penny less per pint. Additionally, a new taxation system was introduced where wine is taxed based on its strength.
Moreover, tobacco duty increased by RPI inflation plus two percentage points following the previous Budget in November. Vapers will also face a £2.20 duty on liquid starting from October 2026. Additionally, there will be a corresponding £2.20 per 100 cigarettes increase in tobacco duty to encourage the transition from tobacco to vaping.
