What price increase? London pubs bustling despite punters having to pay more for alcohol

A rise in the cost of some alcoholic drinks has not deterred these drinkers in London as the city’s pubs were bustling on Tuesday evening.

Changes to the way alcohol is taxed will see hikes of up to 20 per cent on wine while other low-strength options will cost less.

The Government’s decision to tax alcohol based on its strength is expected to lead to at least a £1 increase on a bottle of gin or vodka.

The overhaul coincides with Jeremy Hunt’s ending of the freeze of alcohol duty on August 1, meaning it will increase by inflation at 10.1%.