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UK Alcohol Duty To Rise 4.5% On February 1 As Brewers Cut ABV To Limit Costs

Lower-strength beers fall into cheaper duty bands, offering pubs and retailers some cover against higher costs.

Overview

  • The November Budget set an alcohol duty increase in line with inflation, using the September 2025 RPI of 4.5% from February 1, 2026.
  • UK alcohol duty is charged per litre of pure alcohol, with current bands at £9.61 for 1.3–3.4% ABV and £21.01 for 3.5–8.4% ABV.
  • Heineken UK will reduce Foster's from 3.7% ABV to 3.4% from February 2026 to qualify for the lower duty band.
  • The company says recipe refinements and consumer testing preserve the beer’s taste while promoting more responsible choices.
  • Heineken previously lowered Sol to 3.4% ABV, signaling wider shifts as brewers seek to moderate price rises through reformulation.