Spirits: National Income
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the contribution of on-trade sale of UK spirits to GDP.
Answered by Dan Tomlinson
At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact to GDP, nor competition between the on and off trades.
Following a detailed review between 2020 and 2023, a new duty system was introduced in August 2023. Information about this review and its outcomes are available here:
www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation
The Government plans to evaluate the 2023 alcohol duty reforms in late-2026, in line with our commitment to do so three years after they took effect.
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