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UK Raises Alcohol Duty, Prices Set to Surge

1/31/2026

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Summary

Story summary

The UK government raised alcohol duty by 3.66% effective February 1, announced by Chancellor Rachel Reeves, forcing prices higher.
Gin duty increased by 38p and Scotch whisky by 39p as part of the duty rise.
The Wine and Spirit Trade Association (WSTA) and industry groups warn the hike will squeeze margins and push up prices.
The Treasury says it remains committed to supporting working people amid rising living costs.

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Story summary

The UK government raised alcohol duty by 3.66% effective February 1, announced by Chancellor Rachel Reeves, forcing prices higher.
Gin duty increased by 38p and Scotch whisky by 39p as part of the duty rise.
The Wine and Spirit Trade Association (WSTA) and industry groups warn the hike will squeeze margins and push up prices.
The Treasury says it remains committed to supporting working people amid rising living costs.