TAX CHANGES CAN INCREASE ALCOHOL PRICES

For garden centres in the UK, among other hospitality operators, tax prices will be increased for most wines and spirits while a reduction will be applied to low-alcohol drinks and 'sparkling' wines.

Since 2020, alcohol duties haven't changed but with the prices increasing, the government is pursuing a 10.1% rise.

Alcohol by volume (ABV) drinks that are below 3.5% will have a lower tax rate and drinks with with ABV over 8.5% will remain the same.

The government has reported that the new system is possible due to the UK's departure from the EU, with the intention to lower beer prices and support operators selling alcohol, especially small businesses.

The system will be  split into two parts, with the second coming into effect in February 2025. This would apply a full sliding scale of tax levels according depending on ABV.

"The changes we're making to the way we tax alcohol catapults us into the 21st century, reflecting the popularity of low alcohol drinks and boosting growth in the sector by supporting small producers financially," says Jeremy Hunt, chancellor of the Exchequer. "The previous duty system was complex and unfair but now that the UK is free to set excise policy to suit its needs, the government has brought about common-sense reforms in order to support wider UK tax and public health objectives."

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