The UK Treasury is losing over £100 million per year in alcohol duty revenue following tax hikes on spirits, with industry data showing a £1.1 billion shortfall from original forecasts.

Official figures show UK spirits duty receipts have slumped by £102 million compared with last year, with total alcohol duty income in 2025/26 projected to be £1.1 billion below Office for Budget Responsibility forecasts made in November 2023, following a 10.1% rise under the Conservatives and two further increases since Labour took office.