Bad news everyone, as bottles of wine are set to go up in price from next month as part of a rise in alcohol duty rates.
Earlier this year, Chancellor Jeremy Hunt laid out various changes in his Spring Budget, including areas such as childcare, pensions... and booze.
From 1 August, the government is set to change the way alcohol duty is calculated, with stronger drinks taxed more than weaker equivalents.
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"As announced at Spring Budget 2023, the government will increase the duty rates under the revised duty structure for alcohol products being introduced from 1 August 2023 in line with the Retail Price Index (RPI)," the government website explains.
"This includes all alcoholic products produced in, or imported into, the UK.
"The government will also increase the value of Draught Relief from 5% to 9.2% for qualifying beer and cider products and from 20% to 23% for qualifying wine, other fermented products (previously made-wine) and spirits."
Duty of wine will be charged at £24.77 per litre for wine between 3.5 percent and 8.5 percent ABV and £28.50 per litre for wines between 8.5 percent and 22 percent ABV.
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Analysis from the Wine and Spirits Trade Association (WTSA) a few months ago found that this would mean a nine percent duty rise across 90 percent of still wines.
At the time, the trade association estimated that these two policies mean bottles of wine will rise in price by up to 20 percent - the equivalent of 44p - based on the Treasury using a 10 percent inflation figure.
The WTSA also estimated that fortified wine would be especially hit by the double increase, with port set to rise by £1.29 a bottle and sherry by 97p a bottle.
Indeed, the Mirror roughly echoes these estimates, reporting that port will be the worst hit by the changes, with the alcohol duty on a 75cl bottle going from £2.98 to £4.28, while sherry fans will see the tax go from £2.23 to £3.21.
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You won’t be much better on the voddy, either.
According to the Mirror, the tax on a bottle of vodka is also predicted to rise by 76p.
We do have some good news, though, as sparkling wine lovers will actually see an improvement to prices, with alcohol duty on a bottle set to drop by 19p.
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So you’re best putting down that glass of Harvey’s Bristol Cream and opting for a flute of prosecco instead, which hardly seems like an awful trade.
The other slight silver lining is something the government has dubbed the ‘Brexit pubs guarantee’, which works in the favour of pub punters.
Draught beer and cider sold in pubs will be subjected to a higher level of Draught Relief, which could mean the duty on the drinks is up to 11p cheaper than the same beverage sold in supermarkets.
Hunt said earlier this year: "In December, I extended the alcohol duty freeze until August 1, after which duties will go up in line with inflation in the usual way.
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“But today, I will do something that was not possible when we were in the EU and significantly increase the generosity of Draught Relief so that from August 1 the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee."
Featured Image Credit: PexelsTopics: Food and Drink, Money