WSTA: Alcohol duty revenue in decline despite February tax increase

By Hamish Graham

Published: 24 September, 2025

Fresh figures from HMRC’s latest alcohol duty receipts (published 19 September) show that revenue is down -4.3%. This will frustrate many in the drinks industry who faced a February hike of wine and spirits duty.

For the financial year to date, duty receipts for wine have dropped -6%, with spirits and beer falling -5% and -2.5%, respectively. Revenue drawn from cider has risen 10% by contrast, though sales are not large enough to make a significant difference in terms of the overall decline.

If the trend continues on its current trajectory for the rest of the year, then the total alcohol tax revenue would come in at £12.1bn, £900m less than what the OBR forecast in March of this year.

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Chief executive of the WSTA, Miles Beale, believes the government has shot itself in the foot with their alcohol duty policy.

He commented: “The latest alcohol receipts prove that Government's plan to boost Treasury coffers by raising taxes on alcohol have been a crushing disaster. Alcohol sales have been in steady decline since 2023, following the largest alcohol tax hike for 50 years.

“Instead of bringing in more cash to plug the black hole in public finances they have carved out a loss of over £220 million in the first five months of this financial year compared to the same period last year.

“The only way to break the cycle of tax duty increases depleting Treasury funds and fuelling inflation is to freeze excise duty on wines and spirits at the November Budget.”

The duty increases that came into effect on 1 February 2025 saw alcohol tax increase by RPI 3.6%, as well as the introduction of taxing wine by strength. A wine at 14.5% abv, for example, has seen duty increase by 54 pence.

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