Drinkers and smokers were not subjected to any increases in sin taxes during the recent Spring Statement. The economic update provided by Rachel Reeves in Parliament did not include any significant tax adjustments due to the Chancellor’s commitment to only one major fiscal event annually.
Although no new tax hikes were announced, consumers have already experienced recent increases in alcohol duty. At the start of February, alcohol duty rose by 3.66%, following the RPI inflation rate. This resulted in an additional cost of 11p per bottle of Prosecco, 14p per bottle of red wine, and 38p per bottle of gin, as reported by the Wine and Spirit Trade Association.
In the previous year, drinkers saw a 3.6% rise in alcohol duty, while draught duty decreased by 1.7%, equating to a penny less per pint. Additionally, a new taxation system was implemented where wine is taxed based on its strength.
Moreover, tobacco duty increased by RPI inflation plus two percentage points after the last Budget in November. Vapers are expected to face a £2.20 duty on liquid starting in October 2026, with a similar increase of £2.20 per 100 cigarettes to encourage the transition from tobacco to vaping.
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