It will also increase the cash discount provided to small producers to maintain the relative value of Small Producer Relief (SPR), compared to the main rates. SPR provides lower alcohol duty rates for small producers — provided those products are below 8.5% alcohol by volume (ABV), not produced under licence, and are made on small producer premises producing below 4,500 hectolitres of pure alcohol per year.

Consistent with the wider uprating, the government will also increase the simplified duty rates used for calculating excise duty on alcoholic products brought into Great Britain for personal use

Alcohol duty will be uprated with RPI on 1 February 2026 to maintain its current real-terms value. This is consistent with the government’s policy, reflected in the Office for Budget Responsibility (OBR) forecast, that the duty should keep pace with overall prices.

The government heard representations from stakeholders ranging from a duty cut or freeze to above inflation increases. This decision balances the important contribution of alcohol producers and the hospitality sector to our culture and economy, with the duty’s role in reducing alcohol harm.

To support eligible small producers of alcoholic products, the government will also increase the cash discount provided to small producers, maintaining the relative value of SPR compared to the main duty rates.