Britons have been cautioned that the cost of their preferred alcoholic beverages will increase starting today due to a new tax hike that coincides with the conclusion of Dry January.

Alcohol duty has surged by 3.66%, aligning with RPI inflation rates. This adjustment translates to an additional 11p for a bottle of Prosecco with 11% alcohol by volume (ABV), 14p for a bottle of red wine with 14.5% ABV, and 38p for a bottle of gin with 37.5% ABV, as reported by the Wine and Spirit Trade Association (WSTA).

The decision to raise duties was finalized last year during the Autumn Budget. Industry leaders in the wine and spirits sector have expressed concerns that companies will be forced to raise prices to remain viable.

In the previous year, consumers experienced a 3.6% increase in alcohol duty, leading to a 54p rise in wine prices and a 32p increase for gin, while draught duty saw a 1.7% reduction, equivalent to a penny off a pint.

Simultaneously, a new taxation system was introduced that bases wine tax on its strength. WSTA noted that the tax on a bottle of 14.5% red wine has escalated by £1.10 since the revised alcohol duty scheme was implemented in August 2023.

Alcohol duties are influenced by the potency of beverages. Several beer brands, such as Foster’s, Carlsberg, Coors Light, and Sol, have recently lowered their alcohol content to cut costs.

Emma McClarkin, the chief executive of the British Beer and Pub Association, expressed concerns about the likelihood of further price hikes due to these changes, which could strain brewers’ profit margins.

Miles Beale, chief executive of WSTA, highlighted the complexities of price adjustments, especially for wine taxed by strength, anticipating more administrative challenges for the wine and spirit sector.

A Treasury spokesperson emphasized the role of alcohol duty in maintaining public finances to support essential services.

The provided figures from WSTA illustrate the prices before and after the alcohol duty increase for various drinks effective from today.