After work drinks may become a thing of the past.
Trading financial security for a slightly less miserable hangover in 2025 and where to get “free” booze
OPINION
It’s March 2025, and I’ll bet my last bottle of cost-sensitive Spanish Verdejo that someone, somewhere, is trying to jam another crate of wine under their stairs.
It’s a bit like the 2020 toilet paper panic, but this time, it’s over Britain’s liquid courage. Taxes on alcohol have already started this year, but more related taxes will come here in April.
“From 1st February, alcohol taxes will be increased, following the Chancellor’s decision to increase duty by RPI at 3.6% and introduce taxing wine by strength,” said the Wine and Spirit Trade Association. This will mean duty on a bottle of gin will increase by 32p, and for wine, at 14.5% abv, will increase by 54p.
Taking into account the duty hikes introduced on 1 August 2023, duty on a 14.5% red wine will have increased by 98p in just 18 months, said the association.
“The added tax burden for British businesses doesn’t stop there and wine and spirit companies are set to face a second round of punishing tax increases when new waste packaging recycling fees, as part of Extended Producer Responsibility (EPR), come into effect in April, adding around 18p to a bottle of spirits and 12p to a bottle of wine,” according to the WSTA.
Reeves’ Autumn budget combined with the Booze Tax of ’25, means we will struggle to afford drinking our collective sorrows away. That embarrassing clink of bottles going into your recycling bin on a Saturday morning, will be a reminder that we are worse off than we were last year. The Office for Budget Responsibility (OBR) estimates that alcohol duty revenue was £12.5 billion in 2023/24.
What businesses really think of the state of the economy
One must ask, can the British manage a collective stiff upper lip anymore? I fear that lip is already quivering. That’s largely down to the economy doing its spot-on impression of a sinking ship. All that potential, and what could’ve been. Gone.
According to NewsPage, Sam Kirk, Managing Director at J-Flex Rubber Products, says, “Labour’s economic strategy is about as effective as expecting Neville Longbottom to defeat Voldemort in the first Harry Potter book. Who knew that hiking taxes, drowning businesses in regulation and throwing public money around like confetti wouldn’t stimulate economic growth? Maybe they think the economy runs on magic? Unfortunately for Severus Starmer and co there’s no ‘Expelliarmus Recession’ spell, so I suppose we’re stuck watching them wave their wands and hoping for the best.”
When economists and business owners bump into each other down the pub, they will have plenty to talk about. Tony Redondo, for example, Founder of Cosmos Currency Exchange, says, “At best, Friday’s MOT on the UK economy will show lots of advisory notes; at worst, the car will be ready for salvage by the end of the second quarter once the tax rises hit home. The UK economy’s limping along, with a knackered gearbox that is stuck between neutral and first gear.”
He says early 2025 already feels grim, with growth forecasts cut to 0.9%. “I expect January GDP, out this Friday, to show 0.1% growth at best, reflecting my clients’ slow first quarter with services in first gear and retail, construction, and manufacturing all stuck between neutral and reverse.”
Redondo, like many others, was in for a shock when the government revealed the real GDP figures on Friday. The economy didn’t grow but contracted by 0.1%, which was weaker than forecast, driven mainly by a decline in the manufacturing sector.
Redondo says, “Labour’s “Awful April” NIC, stamp duty, and other tax hikes plus utility cost increases will keep inflation sticky and leave the Bank of England hoping they will not have to raise interest rates again. That would kill the economy stone-dead. The pain is not fully priced in. We still have the Spring spending review to be announced on 26 March and export woes if US tariffs bite.”
The pain we are feeling could indeed last for longer than the Labour Party is willing to admit. Richard O’Connor, Director at First Mats, is like many people working in Great Britain, waiting for a market miracle: “Labour has yet to convince me they’ve got a credible plan for the economy. While they’re pushing more people into work by cutting costs and reforming welfare, they’ve simultaneously made employing people more expensive for businesses like mine. This will inevitably lead to fewer job opportunities, the opposite outcome of what they’re aiming for. What we genuinely need is an environment that encourages businesses to grow, invest and create sustainable employment. Without this shift in approach, my expectation is that the economy will, at best, stagnate for years. Labour urgently needs to rethink its strategy or risk deepening the economic pain beyond April.”
Back to the business of booze…
If you see a member of the Government Wine Committee at your local supermarket with a trolley full of tipple and a slightly panicked look in their eyes, just give them a nod. They’re just trying to survive the great British booze tax of 2025 like everyone else. They do have a sizeable cellar to fill. The wine cellar is funded by the British taxpayer and the day-to-day maintenance is also paid for by the taxpayer. That means the cellar is subject to alcohol duty, which is a tax on alcoholic beverages. However, the Cellar is sometimes “self-financed” through sales of stock and funds paid to Government Hospitality for work undertaken on behalf of other government departments.
According to Fruit and Vine, The UK government’s wine cellar report revealed that government officials consumed 2,813 bottles in 2022/23 and another 2,713 in 2023/24. 64% to 65% of those wines were British. This compares to 1,303 bottles of wines and spirits used in 2021/22.
The report has also revealed that the government spent £47,327 buying new wine in 2022/23 and £49,862 in 2023/24. This includes 1,920 bottles of English sparkling wine and 888 bottles of white Burgundy, as well as 69 bottles of gin.
Now, if you want to drink what the MPs and visiting dignitaries drink, you can head over to the Ridgeview Wine Estate located near Hassocks. This winery produces the government’s favourite wine with more than 350 bottles drunk in the last two years. The government confirmed that its officials consumed 306 bottles of Ridgeview’s Cavendish red in 2022/23 and another 66 in 2023/24.
“The nose is expressive with hints of red fruits. The Pinot dominance brings depth and complexity to the palate with a long-lasting finish, whilst the Chardonnay adds finesse and freshness.” A bottle costs £36.
If you want to see all that the government drinks, it’s all here for you to see. Our taxpayer contributions to the government wine cellar, however, are also making some nice gains. The estimated market value for the cellar’s stock is £3.8m.
| Stock | 2022 to 2023 | 2023 to 2024 |
| Total stock (bottles) | 32,234 | 31,090 |
| Total value at cost | £804,985 | £795,999 |
| Estimated market value | £3.941 million | £3.803 million |
Network for your nectar
Whatever your chosen nectar of the Gods may be, if you’re finding you want to kill two birds with one stone, why not get yourself invited to a government function for British business owners? That way, you will have the opportunity to network and get your tipple for free. Well, you’ve already paid for it in a way, but it’s one way to get your money’s worth and perhaps, in the process, land a new client or assignment.
Bottom’s up!
DISCLAIMER
This article is for information and entertainment purposes only. It is not an invitation to chummy up with your local MPs to get invited to government events in the pursuit of free booze. As always, drink responsibly.
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