Rachel Reeves has been slammed ahead of a new alcohol tax coming into force tomorrow, in the latest blow to pubs and their customers.

Tomorrow pubs and bars across Britain will be hit with a new 3.6% rise in the cost of wine and whisky.

This hike is on top of a previous 10% increase in 2023 under the Tories, meaning lovers of the tipples will be forking out more than ever for their favourite drink.

It also further risks the viability of pubs, which have been struggling to stay afloat for years and are closing across Britain.

In her Autumn Budget, Ms Reeves boasted about supporting pubs by cutting the cost of a pint by 1.7%.

However she sneakily hid the wine and spirits rise in the small print.

Further down the line of producing, gin and whisky distillers are already facing huge increases in the cost of grain, largely thanks to the war in Ukraine, and have been hit with the hammer blow tax on jobs after Ms Reeves increased National Insurance.

Richard Longworth, who founded the Spirit of Skegness distillery in Lincolnshire said: “This latest tax burden on distillers will leave a nasty taste without a growth chaser.

“As a businessman, I understand that sometimes tax rises are necessary, but this punitive increase in spirits duty doesn’t appear to be part of a coherent growth plan and will certainly threaten failure for many.

“We need more than just tax raises; we need a vision and solid plan for prosperity. Supporting businesses such as local distillers who invest and support the economy would be a good place to start.”

Richard Tice, the Reform UK deputy leader, demanded to know: “Why do politicians seem determined to hammer the things we love best rather than help them thrive?

“To mark the 1st of February, a day when yet again they hike the tax on your drink – I’m raising a glass to our great British hospitality businesses – our pubs, clubs, bars, restaurants and hotels.

“I hope you do the same, but I’m sorry that because of government failures, it’s costing you so much more.”

Stephen Russell, UK Spirits Alliance spokesman, said: “The Chancellor’s increase in excise duty on spirits is a kick in the teeth to distillers, landlords and working people who will feel this in their pockets. Pubs are more than pints – a third of all alcoholic drinks sold across hospitality are spirits.”

He warned that her choices at the Budget “won’t stop thousands more pubs and distillers closing down”.

Over 70% of the cost of every bottle of gin and whisky goes to the Exchequer, while a bottle of British beer makes just 2p profit due to costs and taxes.

Ms Reeves increase in both supply costs for producers and sales cost for customers risks undermining the UK spirits industry, which is worth a whopping £13 billion to the UK economy as well as 13,000 jobs.

In 2024, 83% of pubs reported a decline in profits, and 67% reported a decline in footfall.