Capital city in Caribbean containing pub with little spirit (8)
I believe the answer is:
winnipeg
'capital city' is the definition.
(capital of Manitoba, Canada)
'caribbean containing pub with little spirit' is the wordplay.
'caribbean' becomes 'WI' (abbreviation for the West Indies).
'containing' indicates putting letters inside.
'pub' becomes 'inn' (an inn is a type of pub).
'with' is a charade indicator (letters next to each other).
'little spirit' becomes 'peg' (small measure of alcoholic spirits).
'wi' enclosing 'inn' is 'winni'.
'winni'+'peg'='WINNIPEG'
'in' acts as a link.
(Other definitions for winnipeg that I've seen before include "Canadian lake" , "North American city" , "Large lake in Manitoba" , "South Canadian city" , "somewhere in Canada" .)