The Government was under fire on Tuesday over a major alcohol tax shake-up that is set to leave many drinks costing more.
Alcoholic beverages will now be taxed by strength rather than volume, bringing savings on some pale ales, pre-mixed cocktail cans and Prosecco.
But the plans also mean a cost hike in drinks over 12 per cent and could see up to £1 extra added to bottles of wines, spirits, sherry and port.
Minister's argued that some 38,000 struggling pubs will get a boost as tax on draught pints is frozen.
It mean the the tax on beers bought in bars will be 11p lower than in supermarkets from Tuesday.
The Treasury told the Standard that 3,585 London pubs would get a boost in what it is calling its "Brexit Pubs Guarantee".
Prime Minister Rishi Sunak said: “Not only will today’s changes mean that that the price of your pint in the pub is protected, but it will also benefit thousands of businesses.
“We have taken advantage of Brexit to simplify the duty system, to reduce the price of a pint, and to back British pubs.”
However, the Wine and Spirits Trade Association (WSTA) said the changes represented the biggest tax hike on a standard bottle of wine for nearly 50 years.
“Ultimately, the government's new duty regime discriminates against premium spirits and wine more than other products,” WSTA chief executive Miles Beale said.
He also warned the new rules could leave many smaller businesses struggling to stay afloat as they will have to push up prices.
Despite the draught freeze, the British Beer and Pub Association (BBPA) said the tax increase on packaged beer will add an extra £225m of costs per year across the industry.
Brewers will pay 10.1 per cent more tax on bottles and cans of beer from Tuesday, meaning tax will make up around 30 per cent of the cost of a 500ml bottle, the BBPA SAID.
Scotch Whisky Association director of strategy Graeme Littlejohn also hit out at the changes
“The Government has chosen to impose the largest duty increase in almost half a century, increasing the cost of every bottle of Scotch Whisky sold in the UK by almost a pound and taking the tax burden on the average priced bottle to 75 per cent,” he said.
“In a further blow, distillers will now face a further competitive disadvantage in pubs, restaurants and bars by being unfairly excluded from tax breaks available to beer and cider.
“Pubs are about far more than beer and cider.”
Government minister Richard Holden defended the changes.
He told ITV: “What's important is that you actually have a sensible system that works, which is you pay more tax if it's a higher alcohol content.
“Until now we've not had that. Essentially we've had a system which discriminates against Prosecco, pre-mixed cans and doesn't actually bring benefit to pubs.”
The alcohol excise overhaul, announced in the budget, were originally scheduled for February this year but were postponed by Chancellor Jeremy Hunt as part of his cost-of-living crisis measures.
It is being introduced in two stages, with a second adjustment coming in February 2025, which will apply a sliding scale of tax levels according to alcohol content.
