New research from the Scotch Whisky Association has found that the price of alcohol contributes significantly to inflation in 2025. 

According to the SWA’s analysis of figures from the Office for National Statistics, alcoholic beverages contribute £3 in every £100 of inflation rises. 

The association said that these findings come against a backdrop of pressure on the UK government to reduce inflation, which is currently at 3.8%. 

Considering this, the SWA is continuing its call for a multi-year freeze on spirits duty to keep prices stable. This follows a 14% rise in alcohol duty over the past two years. 

If the government chooses to increase alcohol duty, the SWA said it has found that for every 1% increase in alcohol duty, government borrowing costs will rise by £90m next year. 

The SWA highlighted that two years of duty rises have led to a decrease in treasury revenue that is £600m short of OBR forecasts. Revenue from spirits duty was also down 17% in September compared to the same time last year.  

Mark Kent, chief executive of the Scotch Whisky Association, said: “The numbers are compelling: increasing alcohol duty drives up prices for consumers, it drives down business confidence, and dries up public finances. The chancellor herself has said she’s not satisfied with the recent inflation levels, and this research shows just how much the soaring spirits tax contributes to those figures. 

“The wide-ranging support we’ve seen across a variety of sectors for action on spirits duty is testament to the damage that multiple duty hikes do to businesses’ growth prospects and stability. A freeze on excise duty in the autumn budget will not only give businesses confidence in their domestic market but will take pressure off of consumers in the run-up to the festive season and cut treasury borrowing costs in 2026 and beyond.”