UK alcohol tax revenue falls £285m despite higher duty rates

UK alcohol duty revenue has dropped £285 million despite repeated tax increases, according to new HM Revenue & Customs figures. Wine and other fermented products saw receipts fall by £100 million (4%) in the 2025-2026 financial year to date, whilst spirits suffered the sharpest decline with a 7% drop. The only bright spot is cider, which grew 21%, though it represents just 2.5% of overall alcohol duty receipts. The figures suggest that higher duty rates aren't translating into bigger tax takings for the Treasury.