In 2026, the UK Government will implement changes to alcohol duty that will affect breweries, pubs, and consumers alike. At Panther Brewery, we want to keep our customers informed about what these changes mean for the drinks you enjoy.
Key dates:
- 1st February 2026 - Alcohol duty rates increased in line with inflation
- 6th April 2026 - The start of the new UK tax year, which may bring further changes to taxes and duties
What is Changing?
From 1st February 2026, alcohol duty rates will rise in line with Retail Price Index (RPI) inflation, around 3.66% higher than in 2025. This affects all categories of alcohol including beer, cider, wine, and spirits. For example:
- Beer (3.5-8.5% ABV): 2025 duty £21.78 per litre pure alcohol → 2026 duty: £22.58
- Wine and spirits (3.5-8.8% ABV): £25.67 → £26.61
- High-strength drinks (>22% ABV): £32.79 → £33.99
The increase applies to both packages and draught products, though draught beer continues to benefit from a reduced duty rate.
What is Small Producer Relief?
Smaller breweries continue to benefit from Small Producer Relief, which reduces duty rates for eligible producers. The scheme has been adjusted to maintain its value relative to the new duty rates, helping small and independent breweries manage costs.
What Does This all Mean for Breweries, Pubs and Drinkers?
For breweries, duty increases will raise production costs, which may be reflected in the prices we charge for our beers. At Panther Brewery, we remain committed to keeping our beers accessible while continuing to produce high-quality products.
For pubs and retailers, some cost increases may be passed on to consumers. Draught beer remains a cost-effective choice, which is particularly important for hospitality venues like pubs and restaurants managing tighter and tighter margins.
For consumers, while the increases are moderator, prices for beer, wine and spirits are expected to rise slightly.
Although the duty rise took effect in February, the wider tax year begins in April 2026. For breweries and venues, this first quarter of the year will require careful planning to adapt to new cost pressures and market conditions.
At Panther Brewery, we are committed to transparency and helping our customers understand the factors that influence the pricing of our products. Staying informed ensures we can continue producing great beer for the people of Norfolk and beyond.
