The UK Government has announced the increase in alcohol taxes, taking effect across the UK from the 1st of February 2026 and leaving local pubs in a “tricky situation”. 

The Government has uprated all alcohol duty rates in line with the Retail Price Index (RPA) at 3.66% meaning duty on alcoholic drinks such as gin will go up by 38p per bottle. 

Individuals and businesses involved in the manufacturing, distribution, holding, sale, importation and consumption of alcoholic products are likely to be significantly affected by this increase. 

There has been a direct impact on the prices consumers pay for alcoholic beverages. 

Brewers face a £130 million increase in costs industry wide and the price of the pint has been driven to over £7 in some areas.

Gemma Stockham, 19, a student at the University of Sheffield, has said: “I have noticed drinks getting more expensive recently, and as a student, I don’t really have the money to be splashing out like that.”

Another student, Maria Jolley, added: “The prices are extortionate.” 

Alex Dallas Brown, a Bartender at The Fox and Duck pub, said: “We have had to increase drink prices and we have had a lack of returning customers because of these prices.

“If taxes continue to increase, we would have to keep increasing drink prices.” 

In the UK pubs account for just 0.4% of economic turnover but pay 2.1% of all business rates. This puts many pubs under pressure and threat of closure. 

The Government has implemented this increase to keep pace with overall prices in the UK and to balance the important contribution of alcohol producers and the hospitality sector to our culture and economy, with the duty’s role in reducing alcohol harm. 

Small brewers will still maintain the cash discount provided with the small producer relief (SPR), but this will only impact a minority of businesses.

Mr Dallas Brown added: “Other measures that don’t put local pubs under pressure would be better than these new tax measures.”