As January comes to a close, many are relieved with the arrival of February and a fresh influx of funds. However, this month brings notable financial adjustments to keep in mind. An increase in alcohol prices and a reduction in savings rates for Nationwide customers are among the changes.
For self-assessment taxpayers who missed the January 31 deadline, immediate £100 fines are now being issued. Additionally, February will witness the usual announcements on inflation and interest rates.
Alcohol duty is set to rise by 3.66% from February 1, aligned with RPI inflation. This hike will translate to an increase of 11p on a bottle of Prosecco with 11% ABV, 14p on a bottle of red wine with 14.5% ABV, and 38p on a bottle of gin with 37.5% ABV, according to the Wine and Spirit Trade Association (WSTA).
Failure to meet the self-assessment deadline will result in a £100 fine starting February 1, escalating to daily fines of £10 up to a maximum of £900 after three months. After six months, a charge of 5% of tax owed or £300 (whichever is greater) is imposed, repeating at the 12-month mark. Late tax payments also incur interest if not settled by January 31.
The Bank of England’s first meeting of 2026 to determine interest rate adjustments is scheduled for February 5. Currently set at 3.75%, the base rate influences borrowing costs and savings interest rates, resetting every six weeks.
Nationwide will reduce rates on 36 savings accounts from February 10 in response to the Bank of England’s base rate reduction to 3.75%. Various products, including easy-access accounts, ISAs, and children’s savings accounts, will be affected.
Sky Mobile plans to raise prices from February 14, with most customers facing a £1.50 monthly increase, equivalent to an annual rise of £18. Some individuals may experience varying bill adjustments.
The Office for National Statistics (ONS) will release the latest inflation data on February 18, currently standing at 3.4%. The Bank of England targets 2% inflation.
Starting February 23, customers encountering delays or failed installations with smart meters could receive £40 compensation. Eligibility includes waiting over six weeks for an appointment, failed installations due to supplier faults, or lack of resolution plans within five working days.
Stay updated with the latest news by selecting Daily Mirror as a ‘Preferred Source’ on Google News.