1. Home
2. News

WSTA urges alcohol tax cut ahead of Autumn Budget

The WSTA said that the drop in the treasury’s alcohol duty receipts contradicts the “over-optimistic forecast” of the Office for Budget Responsibility (OBR) which anticipated an uplift in tax returns from recent alcohol duty rises.

The last few years have seen tax receipts for alcohol plateau. In 2023/24 this figure stood at £12.59bn; rose marginally to £12.61bn for 2024/5; before dropping to £12.43bn in 2025/26. This plateau comes following a steady rise in duty receipts since the 2006/07 financial year when the figure stood at £7.9bn.

• Read more: England shines at glitzy IWC 2026 Awards bash

If the expected 2.9% rise in duty goes ahead, the WSTA anticipates an additional 10p cost on the average bottle of prosecco; 11p on the average red wine; and 31p for a bottle of gin.

The new excise duty regime for wine and spirits began in 2023 when an initial duty uplift of 20% was seen for most wine, with spirits rising over 10%. Two further tax rises have been seen since.

The drop in alcohol duty revenue comes amid falling consumption. Over the past three financial years spirits volume consumption has dropped 15.3%, with still wine volumes down 8%. It has been widely reported that the effects of the cost of living crisis (which tax rises form a part of) have dented discretionary spending, while the growing trend of moderating consumers also influenced this fall.

Chief executive of the WSTA Miles Beale (pictured) said that “businesses are on their knees” due to this string of duty rises. The impact of business rates, EPR and DRS are also noted as having had a significant impact.

“History has shown that putting up taxes on alcohol is a flawed revenue raising tactic and instead is a death knell for many businesses up and down the country, particularly SMEs. Consumers cannot afford to keep up with the price increases, which are delivering for no-one,” continued Beale.

He added: “As a sector that employs over 400,000 people – of which 60% work in the hospitality sector – the irreparable damage is running deep.

“We can only hope that the new PM and his treasury are willing to listen to sound business arguments, be bold and try a different approach and cut alcohol duty at the Budget. And, in a way, it’s simple: cut duty and grown revenue to repair the public finances.”

On-trade appeal

Representing the on-trade, UK Hospitality is also demanding the government rethink VAT, business rates and NICs to boost the sector and help create jobs. This includes cutting VAT for on-trade venues by 10%; reducing the business rates multiplier discount towards 20%; and reducing NICs by “progressively the threshold to £10,000 by the end of the Parliament”.

Allen Simpson, chief executive of the trade body, commented: “This Budget, under a new Prime Minister, is a moment for change. We have already seen promising signs from the new government in its approach to hospitality and I hope that this Budget will see further backing for the entire hospitality sector.

“Hospitality is the solution to create jobs, help young people into work and drive growth in every postcode.”

• Legislation
• Finance
• WSTA
• tax
• Business
• duty
• Budget
• Autumn Budget
• uk hospitality