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Biggest Change In Alcohol Duties For 50 Years Will Result In Higher Prices For Consumers

The biggest change to the UK’s system of Alcohol Duties for 50 years will result in increased alcohol prices for consumers, say leading tax and advisory firm Blick Rothenberg.

Simon Sutcliffe, a Duty and Customs Partner at the firm said:

“The new arrangements, which result in Alcohol Duty being based directly on the Alcohol by Volume (ABV) of the relevant drinks – are a clear simplification of the system and in that context should be welcomed.

He added: “However, many popular drinks such as wines and spirits actually have a high ABV value and the duty payable on such drinks will therefore increase under the new arrangements.

“This will, realistically, result in higher prices for consumers as retailers and producers pass on the extra alcohol duty to their customers.”

Simon said: “On a positive note, the new Alcohol Duty rules actually increase the ‘duty relief’ associated with alcohol sales in pubs and other licensed premises. This should, if the landlords pass on this increased relief to customers provide some relief for those who enjoy a pint at their local pub rather than simply buying their alcohol at off-licences or supermarkets!”