Britain’s drinks trade group urges government to freeze alcohol duty after spirits sales fall 15%

Britain’s wine and spirits trade group is urging the government to freeze or cut alcohol duty in the Autumn Budget after reporting a marked drop in retail sales volumes since 2023.

The Wine and Spirit Trade Association, or WSTA, said wine volumes sold through the off-trade, which includes supermarkets and other retail stores, fell by 8% in the 52 weeks to the end of March 2026 compared with the same period in 2023. Spirits volumes fell by 15% over the same period. The figures come from NielsenIQ off-trade retail measurement data cited by the trade body.

The WSTA says the decline has coincided with repeated duty increases that have raised costs for both businesses and consumers. Britain’s current alcohol duty system took effect on August 1, 2023, linking wine duty more closely to alcohol strength. That change was followed by two further duty increases, in February 2025 and February 2026.

The group is now asking the government not to add another increase in the Autumn Budget. Instead, it wants duty to be frozen or reduced, arguing that the tax burden has become too heavy at a time when drinks companies are also facing higher operating costs.

Miles Beale, the WSTA’s chief executive, said wine and spirits producers and retailers across the country are struggling to absorb what he described as steep duty increases, while consumers are also under financial pressure. He said another tax rise would add to the strain on the sector and could lead to more business closures.

According to WSTA estimates, duty on a 14.5% ABV bottle of wine will have risen by £1.20 over three and a half years, while duty on a 37.5% ABV bottle of gin will have increased by £1.38. Including VAT, those changes would add £1.35 to the retail price of the bottle of wine and £1.65 to the bottle of gin, the trade body said.

The association also argues that the revised system has left a 14.5% ABV red wine as the highest-taxed wine in Europe. It further says duty on spirits and bottled beer has risen by more than 18% since the 2023 changes. Those claims have been made by the industry group as part of its case for a policy change before the next budget statement.

The issue matters beyond retailers selling directly to shoppers. Higher duty and weaker demand can filter through the wider drinks market, affecting importers, distributors, brand owners and overseas producers that rely on Britain as a major sales destination. If lower volumes persist, pressure on margins and orders could extend across wine, beer and spirits supply chains, especially for companies already dealing with higher employment costs and business rates.

The WSTA says cutting or freezing duty could help support sales, ease costs for consumers and, in its view, potentially increase tax revenue by preventing a deeper drop in volumes. That argument comes as the government faces competing pressures over public finances and inflation-linked tax decisions.

The latest appeal from the trade body adds to a broader debate over how Britain taxes alcohol after the 2023 reform. Supporters of the current system have said linking duty more closely to alcoholic strength creates a clearer structure. Critics in the wine and spirits trade say it has instead increased complexity and raised prices in a category where many products naturally sit at higher alcohol levels.

The sales figures cited by the WSTA cover the 52 weeks ending in March, offering one of the clearest measures so far of how the market has moved since the duty overhaul began. With the Autumn Budget approaching, the trade group is trying to use those numbers to argue that further increases would risk deepening a downturn that it says is already visible in store sales.