Wine duty rises again

Small drinks businesses will benefit from higher business rates thresholds, but wine consumers face another alcohol duty increase. Chancellor John Healey's Budget also extends energy support for glass manufacturers.

The threshold for business rates relief for retail, hospitality and leisure businesses rises from £12,000 to £18,000 in rateable value, taking 70,000 businesses out of business rates altogether. Other business rates in the sector will be frozen in real terms for two years.

Small brewers and cider makers will receive an additional £10m in alcohol duty relief, although conventional wine producers are unlikely to benefit directly. Meanwhile, alcohol duty will rise by 4.55% from February 2027, in line with inflation.

Miles Beale, chief executive of the Wine and Spirit Trade Association, criticised the increase, warning that higher alcohol taxes would put further pressure on businesses and consumers during the cost-of-living crisis.

Energy-intensive industries, including glass manufacturers, will also benefit from an extension of the 25% electricity bill reduction until July 2027.