Prices of alcoholic drinks, including beer, wine and vodka are set to go up in August due to a change in alcohol duty rates.

From today (Tuesday, August 1) alcohol duty rates will rise by 10.1%, in line with September 2022's inflation figure, which was announced in the Spring Statement.

Additionally, the way alcohol is taxed is being changed as a new system will be introduced that will tax alcoholic drinks according to strength.

For example, a 40% alcohol by volume (ABV) bottle of whiskey will be taxed more than a 13% ABV bottle of wine, The Mirror reports.

This replaces the current Alcohol Duty system, which consists of four separate taxes simply covering beer, cider, spirits, wine and made-wine.

Daily Echo: Alcohol will now be taxed by the strength of the drinkAlcohol will now be taxed by the strength of the drink (Image: PA)

How much will different drinks go up by?

The alcohol duty changes will go up differently depending on what drink they are applied to.

This is applied to the following:

  • Port (20% abv 75 cl) - £4.28 (up by £1.30 from the pre-August price of £2.98)
  • Sherry (15% abv 75cl) - £3.21 (up by 97p from the pre-August price of £2.23)
  • Vodka (37.5% abv 70cl) - £8.31 (up by 76p from the pre-August price of £7.54)
  • Still Wine (12.5% abv 75cl) - £2.67 (up by 44p from the pre-August price of £2.23)
  • 440ml can beer (4.5% off trade) - 42p (up by 4p from the pre-August price of 38p)
  • 440 ml can cider (4.5% off trade) - 19p (up by 1p from the pre-August price of 18p)

In a statement to Sky News, Simon Stannard, director of policy at the Wine and Spirit Trade Association said: "Alcohol tax rises will only further fuel inflation.

"It will heap more misery on consumers. And it will damage British business, especially those in the hospitality supply chain, who are still trying to recover from the pandemic."

However, drinks purchased in pubs are set to see a price cut from August under the "Brexit pubs Guarantee", The Mirror reports.

The "Draught Relief" will cut alcohol duty by 9.2% for beer and cider and 23% for wines, spirits and other fermented products purchased in pubs.

According to the Chancellor Jeremy Hunt, this will see beer and cider sold in hospitality venues be 11p cheaper than that sold in supermarkets.