Alcoholic Drinks: Excise Duties
The question
To ask the Chancellor of the Exchequer, if she will revise forward-looking forecasts for revenue from alcohol duty.
Answered by Dan Tomlinson
Alcohol duty receipts for the period March 2025 to October 2025, following the February 2025 rate increase, totalled £7.8 billion, down 4.5% from the same period in 2024 when receipts totalled £8.1 billion. This is driven by an underlying fall in alcohol consumption. Likely factors causing this decline, as identified in the Office for Budget Responsibility's Economic and Fiscal Outlook report published in November 2025, are a growing trend of alcohol moderation and a response to higher prices, as well as a potential impact from demographic changes. You can find the report here: https://obr.uk/economic-and-fiscal-outlooks/
New forecasts for alcohol duty have been produced for Autumn Budget 2025, as shared in the Office for Budget Responsibility's Economic and Fiscal Outlook.
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