Budget 2026: Time to raise our ambitions

October 2026 |

Today (28 October 2026), the Chancellor announced that alcohol duty will continue to match inflation for a third consecutive Budget.



While welcome, the decision does not match the scale of alcohol harm across the UK. Greater action could improve the nation's health and prosperity, raise much-needed revenue and help the Government deliver its ambitions for a healthier, safer and more productive society.

In response, Dr Richard Piper, CEO at Alcohol Change UK, said:

“We cautiously welcome the Government's decision to protect the value of alcohol duty against inflation for a third consecutive year, alongside new tax/duty relief incentives for smaller producers to make lower-strength products.

“But these measures will only take us so far. As the Health Foundation's new policy tracker highlights, the Government's ambition and progress on tackling alcohol harm are falling short of the scale of harm being felt by individuals, families and communities across the country.

“From hangovers, poor sleep and anxiety, to accidents, injuries and chronic illness, alcohol affects our health and wellbeing in many ways. It also puts significant pressure on our public services and reduces national productivity, bringing with it an estimated societal cost of at least £33 billion a year.

“That's why the Government must go further by reintroducing an annual alcohol duty escalator. This could deliver a triple win: reduce and prevent alcohol harm, help narrow the gap between alcohol duty revenue and the wider costs of harm, and encourage even more producers, especially large multinationals, to make lower-strength products. Modelling suggests an escalator of RPI plus 2% on non-draught alcohol could raise an additional £3.4 billion over five years.

“This was an opportunity to make a meaningful, proportionate commitment to improving the nation's health and prosperity. With action on alcohol duty falling short of what is needed, we now need the Government to urgently step up in other areas of alcohol harm: ending the scourge of rapid alcohol deliveries, bringing some common sense back to out-of-control alcohol marketing, and introducing a new alcohol floor price in England to stop the sale of dirt cheap alcohol which causes the most harm.”

Read the full Budget 2026 and related documents here.

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