Alcohol Bulletin commentary (November 2023 to January 2024)
Updated 29 February 2024
© Crown copyright 2024
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Alcohol Duty headlines
The latest 3 months of provisional Alcohol Duty receipts data shows that:
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the provisional total for Alcohol Duty receipts between November 2023 and January 2024 is £3,332 million, £115 million (3%) lower compared to the same period last year
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the provisional total for Alcohol Duty receipts from wine and other fermented products between November 2023 and January 2024 is £1,224 million, £17 million (1.4%) lower compared to the same period last year
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the provisional total for Alcohol Duty receipts from spirits between November 2023 and January 2024 is £1,119 million, £71 million (6%) lower compared to the same period last year
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the provisional total for Alcohol Duty receipts from beer between November 2023 and January 2024 is £928 million, £19 million (2%) lower compared to the same period last year
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the provisional total for Alcohol Duty receipts from cider between November 2023 and January 2024 is £61 million, £8 million (11%) lower compared to the same period last year
About this release
The Alcohol Bulletin National Statistics release presents UK level statistics from the Alcohol Duty administered by HM Revenue and Customs (HMRC) on 4 classes of products:
- wine (includes wine and other fermented products such as fruit ciders)
- spirits
- beer
- cider
National Statistics are accredited official statistics.
The latest release has been updated with provisional duty receipts data from November 2023 to January 2024 and provisional production and clearances data from October to December 2023.
On 1 August 2023, Alcohol Duty reform resulted in a change to the tax regime for Alcohol Duty.
The tables accompanying this release contain receipts, clearances and production data for both the old and new tax regimes.
In these tables, the ‘other fermented products’ category largely contains what was previously under the ‘made wine’ category.
The next release will be published 09:30am 31 May 2024 and will be updated with provisional duty receipts data from February to April 2024 and provisional production and clearances data from January to March 2024.
References to ‘on-trade’ within the Alcohol Bulletin relate to alcohol goods provided within hospitality venues such as bars and restaurants. ‘Off-trade’ relates to alcohol purchased within the retail industry then consumed within private settings such as homes and gardens.
The Alcohol Bulletin is Crown copyright. Its contents can be used as long as the source is made clear by the user.
Changes since the previous edition
In the previous edition, clearances data from January to October 2023 were suppressed in the accompanying tables relating to the old regime. Those tabs have been brought up to date across all affected categories.
The previous release included provisional figures on receipts and clearances by alcohol type and alcohol strength and relief category. These were estimated by dividing estimated receipts for alcohol strength and relief category by the new Alcohol Duty rates. Clearances are now obtained directly from outturn data on the value of liabilities in each alcohol strength and relief category for most alcohol types. As such, this edition no longer includes estimated receipts by alcohol strength and relief category. Due to the available data sources, clearances for cider goods under the new duty regime are still estimated from receipts in this edition.
Clearance figures exclude clearances using Small Producer Relief (SPR) duty rates in most instances. Clearances for wine (under the new Alcohol Duty regime) and ‘other fermented products’ exclude goods released directly onto the UK market from UK producers. This results in total clearances being understated by the volume of these clearances. This will be revised in a future release. Receipt figures are unaffected.
Error corrections and revisions in this edition
HMRC has identified two minor analytical errors affecting published statistics for Alcohol Duty clearances.
The first resulted in understated clearances for spirits based ready to drink goods in the period from February 2021 to June 2023. The majority of revisions resulted in an increase for spirit ready to drink goods clearances of between 3% and 9%. There were 4 revisions of between 15% and 50%, with one revision of around 200% in January 2022.
This error also resulted in a much smaller understatement of clearances of ex-ship and other spirits goods, with the largest revision resulting in an increase to ex-ship and other spirits clearances of around 0.1% in June 2022.
We have now reviewed the methodology used to produce these figures and have updated the series back to July 2010.
The second error affected clearance figures involving imported goods across all alcohol types in the period from June 2022 onwards, with the majority of these revisions resulting in changes of less than 10% to the affected fields. The largest two revisions resulted in decreases to made wine ex-ship clearances of around 40% and 50% in September and December 2022 respectively.
This methodology has also been reviewed, and the series affected have been updated in this edition.
Neither of these errors had any effect on published receipts figures for any alcohol type.
Coronavirus (COVID-19)
HMRC observed impacts to the collection and administration of alcohol duties during all of the 2020 to 2021 tax year, and 2021 to 2022, due to the coronavirus (COVID-19) pandemic.
These impacts, such as disrupted trader payments and altered public consumption of alcohol during and after lockdowns, caused unseasonal trends during these periods. HMRC advise caution when comparing statistics from these periods against other years, particularly for duty receipts.
Total Alcohol Duty receipts
The following section provides the latest total Alcohol Duty receipts statistics. Alcohol Duty follows a one month accounting period. As traders pay duty in the month following when liabilities were accrued, there is a one month lag between accounting periods ending and payment being received by HMRC.
‘Liabilities’ refer to registered traders informing HMRC of how much Alcohol Duty is owed. ‘Accrued’ refers to when liabilities occurred. ‘Duty receipts’ refers to payments of Alcohol Duty made to HMRC.
Duty receipts are reported within the Alcohol Bulletin based upon the month in which they were received by HMRC.
Figure 1: Financial year to date (April to January) Alcohol Duty receipts by type for the current and previous 4 financial years, in £ million.
In Figure 1 above and Table 1 below, “wine” refers to both wine and other fermented products. Figure 1 demonstrates trends in Alcohol Duty receipts for financial year to date:
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provisional April 2023 to January 2024 receipts data shows that receipts from wine and other fermented products have increased by £121 million (3%), receipts from spirits have increased by £11 million (less than 1%), receipts from beer have decreased by £42 million (1%) and receipts from cider have decreased by £13 million (6%) compared to the same period last year
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an increase in off-trade consumption related to COVID-19 lockdowns in 2020 to 2021 and 2021 to 2022 is linked to increased alcohol receipts seen in these years.
Table 1: Financial year to date (April to January) Alcohol Duty receipts by type for the current and previous 4 financial years, in £ million.
| Financial year | Wine | Spirits | Beer | Cider |
|---|---|---|---|---|
| 2019 to 2020 | 3,763 | 3,324 | 3,192 | 239 |
| 2020 to 2021 | 3,993 | 3,606 | 2,809 | 218 |
| 2021 to 2022 | 4,102 | 3,857 | 3,276 | 203 |
| 2022 to 2023 | 3,849 | 3,601 | 3,209 | 210 |
| 2023 to 2024 | 3,970 | 3,611 | 3,167 | 196 |
Table 1 provides the underlying data from Figure 1 for users.
Figure 2: Total Alcohol Duty receipts by month, covering April to January of the 2023 to 2024 financial year and all months of the previous 2 years, in £ million.
Figure 2 illustrates the following trends for total Alcohol Duty receipts by month:
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the provisional 2023 to 2024 financial year to date total for Alcohol Duty receipts is £10,945 million, an increase of £76 million (1%) compared to the same period last year
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the rising cost of living could potentially have influenced the lower level of receipts seen in early 2022 to 2023, compared to the previous financial year, as individuals may have had less disposable income
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the elevated receipts seen in July and August 2023 and decreased receipts seen in September and October 2023 could be related to changes in trader behaviour due to the change in tax regime which came into effect on 1 August 2023. In January 2024 receipts have returned to a level consistent with previous years
Table 2: Total Alcohol Duty receipts by month, covering April to January of the 2023 to 2024 financial year and all months of the previous 2 years, in £ million.
| Financial year | 2023 to 2024 | 2022 to 2023 | 2021 to 2022 |
|---|---|---|---|
| April | 1,064 | 1,123 | 1,010 |
| May | 992 | 978 | 1,100 |
| June | 1,024 | 1,132 | 1,143 |
| July | 1,313 | 1,035 | 1,155 |
| August | 1,579 | 1,026 | 1,122 |
| September | 715 | 1,067 | 1,108 |
| October | 927 | 1,061 | 1,194 |
| November | 1,112 [provisional] | 1,141 | 1,328 |
| December | 1,297 [provisional] | 1,387 | 1,411 |
| January | 923 [provisional] | 918 | 869 |
| February | [x] | 734 | 832 |
| March | [x] | 841 | 846 |
Table 2 provides the underlying data from Figure 2 for users. For months where no data is available, this is marked as [x] within the table.
Alcohol Duty receipts from wine and other fermented products
Alcohol Duty receipts for wine are comprised of the duty payable on wine produced from fresh grapes, and other fermented products which are any other drink that has alcohol made by fermentation, apart from beer and cider. An example of a product in the category of other fermented products would be fruit cider. Wine and other fermented products become dutiable when their strength exceeds 1.2% alcohol by volume (ABV). Since August 2023, Alcohol Duty on wine and other fermented products is charged per litre of pure alcohol.
Go to HMRC Excise Notice 163: wine production for detailed information on Alcohol Duty charged on wine and other fermented products.
Figure 3: Alcohol Duty receipts from wine and other fermented products by month, covering April to January of the 2023 to 2024 financial year and all months of the previous 2 years, in £ million.
Figure 3 illustrates the following trends for Alcohol Duty receipts from wine and other fermented products:
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the provisional 2023 to 2024 financial year to date total for Alcohol Duty receipts from wine and other fermented products is £3,970 million, an increase of £121 million (3%) compared to the same period last year
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in line with previous years, figures for 2022 to 2023 peaked in December and then returned to levels similar to, but slightly lower than, those seen in 2021 to 2022
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April to June of 2023 to 2024 is comparable to the same period in 2022 to 2023. The elevated receipts seen in July and August 2023 and decreased receipts seen in September 2023 could be related to changes in trader behaviour due to the change in tax regime which came into effect on 1 August 2023
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decreased receipts in December 2023 compared to the same month in previous years are balanced by increased receipts in January 2024
Table 3: Alcohol Duty receipts from wine and other fermented products by month, covering April to January of the 2023 to 2024 financial years and all months of the previous 2 years, in £ million.
| Financial year | 2023 to 2024 | 2022 to 2023 | 2021 to 2022 |
|---|---|---|---|
| April | 388 | 422 | 411 |
| May | 357 | 336 | 400 |
| June | 341 | 398 | 420 |
| July | 424 | 371 | 392 |
| August | 623 | 366 | 392 |
| September | 253 | 358 | 388 |
| October | 360 | 357 | 406 |
| November | 399 [provisional] | 385 | 464 |
| December | 462 [provisional] | 544 | 520 |
| January | 362 [provisional] | 311 | 309 |
| February | [x] | 287 | 336 |
| March | [x] | 255 | 295 |
Table 3 provides the underlying data from Figure 3 for users. For months where no data is available, this is marked as [x] within the table.
Alcohol Duty receipts from spirits
Alcohol Duty for spirits is payable on any spirits, or any mixture or combination of spirits, at a strength of more than 1.2% ABV. Duty becomes chargeable following distillation or manufacture of spirits, and normally payable once it’s taken out of warehouse storage. Alcohol Duty on spirits is charged per litre of pure alcohol.
Go to HMRC Excise Notice 39: spirits production in the UK for detailed information on Alcohol Duty charged on spirits.
Figure 4: Alcohol Duty receipts from spirits by month, covering April to January of the 2023 to 2024 financial year and all months of the previous 2 years, in £ million.
Figure 4 demonstrates the following trends for Alcohol Duty receipts from spirits:
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the provisional 2023 to 2024 financial year to date total for Alcohol Duty receipts from spirits is £3,611 million, an increase of just £11 million (less than 1%) compared to the same period last year
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the elevated receipts seen in July and August 2023 and decreased receipts seen in September and October 2023 could be related to changes in trader behaviour due to the change in tax regime which came into effect on 1 August 2023. In January 2024 receipts have returned to a level consistent with previous years
Table 4: Alcohol Duty receipts from spirits by month, covering April to January of the 2023 to 2024 financial years and all months of the previous 2 years, in £ million.
| Financial year | 2023 to 2024 | 2022 to 2023 | 2021 to 2022 |
|---|---|---|---|
| April | 337 | 369 | 328 |
| May | 314 | 299 | 368 |
| June | 349 | 367 | 359 |
| July | 484 | 334 | 362 |
| August | 528 | 314 | 362 |
| September | 193 | 337 | 359 |
| October | 287 | 390 | 420 |
| November | 392 [provisional] | 407 | 507 |
| December | 471 [provisional] | 521 | 517 |
| January | 256 [provisional] | 261 | 274 |
| February | [x] | 233 | 256 |
| March | [x] | 302 | 288 |
Table 4 provides the underlying data from Figure 4 for users. For months where no data is available, this is marked as [x] within the table.
Alcohol Duty receipts from beer
Beer is defined as ale, porter, stout and any other description of beer. It is dutiable in the UK once its strength exceeds 1.2% ABV. Taxpayers become liable for Alcohol Duty on beer once it is produced, imported or released onto the UK market for consumption. Since August 2023 Alcohol Duty on beer is charged per litre of pure alcohol.
Go to HMRC Excise Notice 226: Beer Duty for detailed information on Alcohol Duty charged on beer.
Figure 5: Alcohol Duty receipts from beer by month, covering April to January of the 2023 to 2024 financial year and all months of the previous 2 years, in £ million.
Figure 5 demonstrates the following trends for Alcohol Duty receipts from beer:
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the provisional 2023 to 2024 financial year to date total for Alcohol Duty receipts from beer is £3,167 million, a decrease of £42 million (1%) compared to the same period last year
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year on year increases for Alcohol Duty receipts from beer should be treated with caution as receipts in April 2021 were relatively low because coronavirus restrictions were still in place for on-trade venues when these receipts were accrued in March 2021
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Alcohol Duty receipts from beer tend to be quite volatile and this is likely the result of coronavirus lockdowns, during which time a larger proportion of beer was consumed on-trade relative to other alcohol products. Additionally, Alcohol Duty receipts from beer are easily influenced by large sporting events.
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the elevated receipts seen in July and August 2023 and decreased receipts seen in September and October 2023 could be related to changes in trader behaviour due to the change in tax regime which came into effect on 1 August 2023. By January 2024 receipts have returned to a level consistent with previous years
Table 5: Alcohol Duty receipts from beer by month, covering April to January of the 2023 to 2024 financial years and all months of the previous 2 years, in £ million.
| Financial year | 2023 to 2024 | 2022 to 2023 | 2021 to 2022 |
|---|---|---|---|
| April | 319 | 316 | 256 |
| May | 300 | 319 | 309 |
| June | 310 | 350 | 343 |
| July | 388 | 308 | 381 |
| August | 404 | 325 | 343 |
| September | 255 | 356 | 336 |
| October | 264 | 288 | 345 |
| November | 299 [provisional] | 314 | 340 |
| December | 343 [provisional] | 305 | 357 |
| January | 286 [provisional] | 328 | 266 |
| February | [x] | 200 | 227 |
| March | [x] | 271 | 244 |
Table 5 provides the underlying data from Figure 5 for users. For months where no data is available, this is marked as [x] within the table.
Alcohol Duty receipts from cider
Cider is defined as cider of a strength exceeding 1.2% ABV but less than 8.5% ABV obtained from the fermentation of apple or pear juice. It becomes liable to alcohol duty once it is produced, imported or released onto the UK market for consumption. Since August 2023 Alcohol Duty on cider is charged per litre of pure alcohol.
Go to HMRC Excise Notice 162: cider production for detailed information on Alcohol Duty charged on cider.
Figure 6: Alcohol Duty receipts from cider by month, covering April to January of the 2023 to 2024 financial year and all months of the previous 2 years, in £ million.
Figure 6 demonstrates the following trends for Alcohol Duty receipts from cider:
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the provisional 2023 to 2024 financial year to date total for Alcohol Duty receipts from cider is £196 million, a decrease of £13 million (6%) compared to the same period last year
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cider goods historically have the lowest Alcohol Duty receipts, representing around 2.5% of the yearly total
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Alcohol Duty receipts from cider for the 2022 to 2023 financial year could be increased as a result of sporting events such as the Rugby League World Cup and Football World Cup, spanning October to December 2022.
Table 6: Alcohol Duty receipts from cider by month, covering April to January of the 2023 to 2024 financial years and all months of the previous 2 years, in £ million.
| Financial year | 2023 to 2024 | 2022 to 2023 | 2021 to 2022 |
|---|---|---|---|
| April | 20 | 15 | 14 |
| May | 20 | 25 | 24 |
| June | 24 | 16 | 20 |
| July | 18 | 21 | 20 |
| August | 24 | 21 | 25 |
| September | 15 | 17 | 25 |
| October | 15 | 26 | 23 |
| November | 22 [provisional] | 34 | 16 |
| December | 20 [provisional] | 17 | 17 |
| January | 20 [provisional] | 18 | 20 |
| February | [x] | 14 | 13 |
| March | [x] | 13 | 18 |
Table 6 provides the underlying data from Figure 6 for users. For months where no data is available, this is marked as [x] within the table.
Contacts
The Alcohol Bulletin is produced by the Indirect Tax Receipts Monitoring team as part of the ‘Excise duties, VAT, and other tax statistics’ collection.
Contact revenuemonitoring@hmrc.gov.uk for statistical enquiries.
Contact HMRC press office for media enquiries.