There is growing pressure from UK Government ministers for a significant hike in duty tax on spirits in the upcoming UK Budget, according to drinks industry leaders.

Tax on spirits could soar in the Budget, if those ministers lobbying for it win the argument with the Treasury, just-drinks understands.

“There is a lot of pressure from centre of Government to do something about price,” a senior drinks industry source told just-drinks.

Pressure from certain key ministers has become more intense since the UK Parliament’s Health Committee published a damning report on alcohol abuse in January. The Committee accused the Government of being too close to the drinks industry.

While a minimum price on drinks remains on the outskirts of Government thinking, just-drinks understands that there are calls for a show of force on duty, in order for the Government to show that it is taking a hard stance on the issue of alcohol misuse.

Alcohol has become a political football between the Government and the opposition, ahead of a General Election, which is expected in May.

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A four-year “tax escalator” on alcohol means that duty tax on drink is set to rise by 2% above inflation in this year’s Budget, expected to be announced at the end of March.

At current inflation, this would be an increase of 5%, but industry fears that the Government may go further on spirits in particular.

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