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Alcoholic Drinks: Excise Duties

Question for Treasury

UIN 100697, tabled on 10 January 2022

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential effect of the proposed changes to the Alcohol Duty System announced in October 2021 on the prices of (a) port, (b) sherry and (c) fortified wines.

Answered on

18 January 2022

To better support public health and provide a more level playing field, we are moving to a system where all drinks between 8.5% and 22% ABV will pay the same rate of duty, linked to the alcohol content of the product. This means that the stronger the drink, the more duty will be paid, and vice versa.

Subsequently, higher strength fortified wines, port and sherry will increase in price, while still wines below 11.5% ABV will become cheaper. However, the changes will also mean that the duty on spirit-based liqueurs will reduce, and will for the first time pay the same duty as wines.

The Government is continuing to engage with industry on these reforms. A consultation was launched in October and industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.

Answered by

Treasury