The UK’s wine and spirit businesses unite in a call for the Chancellor to announce a duty cut and avoid costly red tape, at the Spring Budget

Budget | 01 March, 2024

The Wine and Spirit Trade Association along with over 100 UK wine and spirit producers, retailers and hospitality businesses have made a last-ditch plea for the Chancellor to cut alcohol duty and avoid unnecessary red tape.

In a letter, signed by the WSTA and 120 businesses, the sector has called on Jeremy Hunt and Gareth Davies MP, Exchequer Secretary to the Treasury, to announce a duty cut to “help prevent further price rises for consumers, drive down inflation and increase income to the Treasury” and make “permanent the wine easement will save thousands of wine businesses pointless and costly bureaucracy.”

Last week HMRC published the latest excise duty receipts, which for wine and spirits combined showed the Treasury lost £436million between September and January compared with the same period in 2022/23. Add to that, losses from beer and cider, Treasury coffers are down almost £600million.

Alcohol duty hikes in August last year were the largest in almost 50 years, adding 20% to excise duty on over 85% of all wines on the UK market and more than 10% to duty paid on full strength spirits.

Following those duty increases, sales volumes have declined, alcohol inflation has risen to more than double the headline rate – while revenue from duty receipts has declined.

The WSTA’s, soon to be published, Market Report reveals that in the twelve weeks to December sales of spirits and wine were in decline in Britain’s supermarkets and shops. Compared to the previous year:

• Spirit volume sales were down 7.1% – the equivalent of 7.7 million bottles of spirits
• Wine volume sales were down 4.1% – the equivalent of 10 million bottles of wine.

Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said:   

“Wine and Spirit businesses across the country are urging the Government to do the right thing at the Budget next week: support British business and boost Treasury coffers by cutting alcohol duty. Record high duty hikes last August have now been shown to achieve the exact opposite – and have instead fuelled inflation and significantly reduced excise duty receipts to the Exchequer.

The wine sector is also united in asking the Chancellor to use his Budget statement to announce that the Government is calling time on its plans to swamp businesses in unnecessary red tape. The costly and fiendishly complex new taxation plans that are due to come into force from 1 February 2025 have been described as “un-administrable” and “sheer lunacy” by our members. Instead, the Chancellor should keep in place the temporary, simplified procedure for taxing 85% of wines on the UK market.

The cost to businesses will run into millions and millions of pounds. Unfortunately, the same businesses will have no choice but to pass on these costs to already cash-strapped consumers. We are calling on the Chancellor to do himself – and everyone else – a huge favour by cutting alcohol duty and making the wine easement permanent.”

UK consumers currently pay £2.67 on duty for a bottle of 12.5% abv wine, compared to the French who pay just 3p a bottle irrespective of its strength.

If the Government announces a duty hike at the Budget, wine duty would go up to a painful £2.80 a bottle and spirit duty £8.71 a bottle, in August, based on current RPI.

John Colley, CEO of Majestic, said:

“The Government intended to create an alcohol duty system that was simpler, fairer and less bureaucratic for businesses to administer, but their plans fail on every measure. The proposed change from one duty band to 30 different bands based on ABV will be bad for retailers, hospitality businesses, consumers and the wine industry. Common sense needs to prevail and this needs to be stopped.

Implementing this overly complicated policy not only increases costs, but will result in international wine producers avoiding the UK due to more red tape. It is anti-business, anti-growth and anti-jobs.

As the UK’s biggest wine retailer, we have serious doubts the systems required to administer the new taxes correctly are even possible to implement. There would be substantial costs involved and no value to consumers, to businesses, or to Treasury coffers. The lack of understanding shown by the Government in how wine is made and distributed is alarming.

This is not just about Majestic. The proposed policy will disproportionately hit small businesses – including the 900 independent wine merchants operating across the UK and the many importers dealing with the international wine trade. It will hammer high street retailers and hospitality venues, threatening growth and, ultimately, peoples’ jobs and livelihoods.”

He added: “We believe that a cut in alcohol duty will boost revenue to the Exchequer, help support British businesses like ours and prevent further unnecessary price increases for consumers.”

The letter and signatories in full:

Rt Hon Jeremy Hunt MP, Chancellor of the Exchequer, and  Gareth Davies MP, Exchequer Secretary to the Treasury
1 Horse Guards Road
Westminster
London
SW1A 2HQ

29th February 2024

Dear Chancellor and Exchequer Secretary,

Last August’s double digit increases in wine and spirit duties have stifled sales, fuelled inflation and reduced revenue to the Exchequer. Sales figures to December shows spirit volumes down 7.1% and wine volumes down 4%. Alcohol inflation is running at over 8%, more than double the headline rate, and 90% of year-on-year price increases on wine and spirits are down to duty hikes. Because of the decline in sales, wine and spirit duty in the last 5 months on record is over £400m lower than in the same period a year ago.

We are calling on the Government to cut duty at the Budget – which would help prevent further price rises for consumers, drive down inflation and increase income to the Treasury – while making permanent the wine easement will save thousands of wine businesses pointless and costly bureaucracy.

Cut duty. Avoid red tape. Keeping it simple is a win-win for all.

Yours sincerely,

1. Miles Beale, Chief Executive, The Wine and Spirit Trade Association
2. John Colley, CEO, Majestic
3. Simon Lawson, Managing Director, Casella Family Brands (Europe) Ltd
4. Mark Riley, Managing Director, Edrington UK
5. Elizabeth Rudd, Chairman, Berry Bros & Rudd
6. Steve Finlan, CEO, The Wine Society
7. Alexei Rosin, Managing Director, Moët Hennessy UK
8. Kris Comerford, SVP – Chief Commercial Officer – Food, Asda
9. Kathy Caton MBE, Managing Director, Brighton Gin
10. David Gates, Group CEO, Direct Wines
11. Jay Wright, CEO, Virgin Wines
12. Patrick McGrath, CEO, Hatch Mansfield
13. Blake Liddell, VP/GM EMEA, E&J Gallo Winery
14. Philippa Strub, UK CEO, Laithwaites
15. James Hayman, Co-owner, Haymans Gin
16. Ed Baker, Managing Director, Kingsland Drinks
17. Dan Szor, Founder/Executive Chairman, The Cotswold Distilling Company Ltd.
18. Alex Hunt, MW Purchasing Director, Berkmann Wine Cellars
19. Matt Tipping, CEO, Jeroboams
20. Tony Watson, General Manager EMEA, Treasury Wine Estates
21. Daniella Dunlop, Compliance Manager, Encirc
22. Hal Wilson, Managing Director, Cambridge Wine Merchants
23. Melissa Draycott, Managing Director, Gonzalez Byass UK
24. Karl Mason, Managing Director, Masons of Yorkshire Gin
25. Simon Doyle, General Manager, Concha y Toro Europe
26. Robert Hilton, Head of Operations on behalf of the following companies: Freixenet Copestick Limited, Jascots Wine Company Limited & Slurp Wine Company Limited
27. Andrew Carter, CEO, Chapel Down 
28. James Davis, Managing Director, Bolney English Wine Estate Ltd
29. Michael Cleary, Managing Director, Mast-Jaegermeister UK Limited
30. Hugh Anderson, Downton Distillery
31. Tom Mann, Director, Mann Fine Wine Ltd
32. Charles and Ruth Simpson, Owners, Simpson English Wine Estate
33. Piers Thompson, External Relations Director, St Austell Brewery
34. Louise Peverall, Owner/Director, La Cave de Bruno
35. James Ellis, Director, Ellis Wines
36. Nick Room, Director, RT Wine Solutions Ltd
37. Mark and Sarah Driver, Owners, Rathfinny English Wine Estate
38. Julian Dyer, Chief Operating Officer, Australian Vintage
39. James Miles, Chairman & CEO, Liv-ex Ltd
40. Martyn Oakley, General Manager, Averys of Bristol
41. Joe Wadsack, Owner/Presenter, The Drinks Coach UK
42. Simon Rollings, CEO, Canned Wine Company Ltd
43. Chris Palmes, Head of Engineering & Projects, Bevisol
44. Jem Gardener, Managing Director, Vinceremos Organic Wines
45. Bill Oddy, Managing Director, The Drinks Company Ltd
46. Charles Maxwell, Director, Thames Distillers Ltd
47. Richard Cochrane, Managing Director, Felix Solis UK Ltd
48. Anna Blakeston, Head of Logistics, Indigo Wine
49. Greg Shaw, Director, SH Jones Wines Ltd
50. Linda Cowan, Operations Director, Alliance Wine
51. Christopher Carson, Managing Director, Carson Wines
52. Simon Thomas, Managing Director, Zonin1821
53. Nicholas Tatham MW, CWF (Continental Wine & Food; Huddersfield)
54. Jay Gifford’s, Managing Director UK, Europe, Australia & New Zealand, WX Brands
55. Ylenia Astegiano, George Hill Wine
56. Jack Chaddock, Robert Rolls Ltd
57. Paul Howard, Wine Alchemy
58. George Hammond, Georgonzola
59. Victoria Anderson, EH Booth & Co Ltd
60. George Bergier, Victorian Chop House Company
61. Nish Kotecha, Director, Myliko Wines
62. Ian Howard & Sam Griffith, That Wine Cellar
63. Richard Kilian, Once Upon a Vine
64. Oliver Frestle, Ad Hoc Wine Shop
65. Matthew Morgan, Finders Keepers
66. Ian Schofield, Sip Wine Bar
67. Annie Rooney, Whitmore & White
68. Eva Pemper, Eva Pemper Wines
69. Michael Fox, Foxylady Caterers
70. Andrew Southall, Three Pillars Wine
71. Des Lenahan, Ake & Humphris wine & beer Merchants
72. Laura Mead & Sharon Davies Hassett, Wild Wines
73. Paul Malkin, Cultural Wine
74. Paul Robinson, Robinsons
75. Tricia Yates, The Everybody Wine Company Ltd
76. Dave Skelton, Barber’s Parlour & Fine Wines
77. Kahe Denton, Hebron Wine Cellar
78. Fushia Adamwaite, Adega Wine Cellar
79. Gemma Stake, Reserve Wines
80. John Small, J Small Wines
81. Peter Hedges, Managing Director, Bacchus Beyond
82. Sarah Abbot MW, Director, Swirl Wine Group
83. Enrico Bucci, Santa Margherita
84. Kevin Bowers, Managing Director, Marta Vine Ltd
85. Robin Baum, RBW Fine Wines
86. Eleanor Scott, Amante Wine
87. Robert Ewing, Delibo Wines
88. Annabelle Tilley, Director, Tilley’s Wines
89. Bradley Horne, Founder, WineTimeLondon
90. Sean Pines, Pines Wines
91. Peter Crawford, Sip Champagnes
92. Daniel Grigg, Museum Wines
93. Violaine Manac’h, Halo Wines
94. Martin Chapman, Managing Director, Peter Osborne Fine Wine
95. Tim Hawkins, Richmond Wine Agency
96. Adam Cernik, Jackson Nugent Vitners
97. Ian Haggie, DGB Europe
98. Steve Leak, Director, The Bishops Cave
99. Dale Jarrett, N&D Wine School
100. Francis Flavin, Davy’s Wine Merchants
101. Sue Harris, Managing Director, Westbury Communications Wine PR
102. Jill Carver, Added Ingredients
103. Dillon Morrall, Dillon Morrall Wine Marketing & PR
104. Joe Wadsack, Owner/Presenter, The Drinks Coach UK
105. Jason Millar, Jason Drinks
106. Jimmy Smith, Wine with Jimmy
107. EriK Laan, Founder, The Vineking
108. Dan Farrell-Wright, Founder, Wickhams Wine Merchant
109. Ian Green, Wine with Ian
110. Tom Van der Neut, Lanchester Wines
111. Karen Jenkins, Founder, WineWithal
112. Richard & Tracie Dudley, iubentium Ltd
113. Neil Goldie, Cachet Wine
114. Lee Issacs & Anna Gomez, Flavours of Spain
115. Giles Turner, Burgate Wines
116. Duncan Murray, Duncan Murray Wines
117. Rosalyn Magee, Magee’s Wine Lodge
118. David Woodall, Wine with Woody
119. Simone Korber, The Wee Wine Shop
120. Joseph Rubin-Broad, Director of Wine, Vineyard Cellars
121. Marta Carbonell, Le Petit Négociant
122. Kevin McSweeney, Kask