Deputies Sasha Kazantseva-Miller and Marc Leadbeater want to scrap the extra 2% increase above RPIX proposed in the 2027 Budget. They estimate their proposal would cost £300,000 next year.
The two Economic Development members said the aim was to support hospitality businesses facing rising costs and continued inflationary pressure.
‘The committee consulted with alcohol producers and representatives of the retail and hospitality sectors during 2026,’ they said.
‘Respondents emphasised the need for stability and supported limiting duty increases to RPIX only, accompanied by a commitment to maintain this approach for a number of years. This would assist businesses in planning and investment decisions.’
The deputies said their committee shared that feedback with Policy & Resources before the Budget was published.
Economic Development welcomed the new tap rate duty discount and agreed it would give the sector some help. But it said the discount mainly applied to draught products, and that bottled wine, bottled beer and spirits sold in pubs and restaurants would still face the RPIX plus 2% rise.
‘At a time when hospitality businesses are already facing rising operating costs, further increases may add to affordability pressures for consumers and may adversely affect demand within the sector,’ the deputies said.
The Budget cites declining alcohol consumption as one reason for the extra increase. However, the committee said the rising cost of eating and drinking out, and the resulting changes in how people spend, may also be factors.
The deputies pointed out that Jersey has proposed raising alcohol duty in line with RPI only. With many businesses operating in both islands, they said Guernsey’s plan would widen the gap between the two.
‘Based on the proposed rates for 2027, this would result in an increase of 2.8% in Jersey, compared with 6.3% [RPIX +2%] in Guernsey,’ they said.
The freeze is intended to last three years. However, it could be reviewed sooner if Guernsey followed Scotland in introducing a minimum price per unit of alcohol.
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