In its autumn budget, the government outlined its plans for the duty hikes, stating that the increase to RPI is to “maintain its current real-terms value”. Adding that, “the government heard representations from stakeholders ranging from a duty cut or freeze to above inflation increases.

“This decision balances the important contribution of alcohol producers and the hospitality sector to the UK’s culture and economy, with the duty’s role in reducing alcohol harm.”

Industry bodies have been quick to voice their disappointment with the new measures, with the Wine and Spirit Trade Association (WSTA) highlighting that when the new rates come into effect, “wine and spirit prices will have risen by almost £1 a bottle in a year”.

Miles Beale, chief executive of the WSTA, said: “This Budget has been dubbed a death by a thousand cuts, and for wine and spirit businesses those cuts run deep. Our members are still reeling from the tax hikes introduced in February, and the additional burden of the costly new glass tax, known as EPR. Coupled with rises in National Insurance, increases to the minimum wage and business rates, it is no surprise that wine and spirit producers – along with our beleaguered hospitality sector – feel under sustained attack.

“The Government’s typically disappointing and shortsighted decision to raise alcohol duty yet again will only prolong the doom loop. Despite the OBR at last acknowledging higher prices lead to a decline in receipts, the Government fails to recognise that its own policy is driving up those prices. Amazingly, the Treasury continues to press ahead with its ill-founded plan to pile further duty increases on alcohol.”

The Scotch Whisky Association (SWA) mirrored the concerns of the WSTA, pointing to data that reveals previous duty hikes have cost the treasury.

"The previous 3.65% increase to spirits duty has reduced spirits revenue by 7% - a loss to the Treasury of £150m,” said Mark Kent, chief executive of the SWA.

“Hiking duty today, for the third time in two years, not only limits our sector’s ability to contribute to much-needed economic growth and productivity but will once again fail to deliver for the public purse and needlessly cost jobs.

“Increasing global and domestic pressures led our industry to ask for duty in our home market to remain unchanged. Not a tax cut, not a handout, simply breathing room for a critical Scottish industry. Government has chosen to ignore those warnings, to the detriment of distillers, of bars and restaurants, our farmers and suppliers, and ultimately of growth."