UK wine duty rises again as inflation-linked tax hike takes effect

From Sunday 1 February 2026, shoppers and hospitality venues across the UK face another upward push on alcohol prices after a duty rise linked to inflation comes into force. The government confirmed the increase would track Retail Prices Index (RPI) inflation, lifting alcohol duty by 3.66%.

While the duty is charged to producers and importers, drinks industry leaders warn the change will inevitably filter through supply chains and show up in shelf prices and bar tabs. For wine drinkers, one of the clearest examples is a typical 750ml bottle of 14.5% ABV red wine, where the duty component rises by roughly 14p under the new rates.

Among Europe’s highest wine taxes

Under the UK’s alcohol duty system, wine is taxed based on its alcohol content, and official HMRC rates updated for 1 February 2026 indicate duty on wine in this strength range works out at about £3.33 per bottle.

That level is striking in a European context. Many major wine-producing countries levy little or no excise duty on still wine, while Nordic countries and Ireland sit at the top end. A January 2026 European industry comparison shows Finlandand Ireland among the highest-excise jurisdictions, with many others at or near zero.

Pressure on pubs and the wider drinks trade

The rise lands at a tense moment for the on-trade, with pubs warning that even small duty shifts stack up quickly across high volumes. Industry bodies say the duty change adds around 2p in tax to a pint, and fear the cumulative effect of costs and tax changes will squeeze margins further.

Excise/Duty on a 750ml Bottle of 14.5% ABV Still Wine (GBP, approx.)

Estimates shown are excise/duty only (not VAT/sales tax, not retailer margins, not provincial/state markups). US figure is federal excise only.

Data (GBP per bottle, approx.): UK 3.33; Finland 3.28; Ireland 2.76; Sweden 1.74; France 0.03; Canada 0.29; US 0.16.