WSTA comments on the publication of the Alcohol Duty Review response

Following the Government’s response to the Alcohol Duty Review Consultation Miles Beale, Chief Executive of the Wine and Spirit Trade Association said:

“We welcome the Government’s sensible decision to freeze duty on wine and spirits.

However, the Government’s response to the consultation on reviewing the way the UK taxes alcohol is a product of the Sunak era and clashes strongly with Chancellor Kwarteng’s desire to unleash the potential of the private sector and to simplify taxation. The proposals mean wine between 11.5% and 14.5% will be taxed at the mid-point – but only for 18 months. After that the Treasury are set to tax wine by strength adding a costly administrative burden for UK wine businesses and consumers. Fortified wine will be offered no transition, meaning the outlook is even worse.

For months the WSTA has been calling for a simpler system for wine taxation which would cut costly red tape. The response published today fails to do so – or to understand the impact that taxing wine by strength will have on the UK wine businesses and consumers.

We need a permanent and simple way of taxing wine, the UK’s most popular alcoholic drink. An 18-month transitional period fails to do this and it is not available to all wines.

These latest proposals will be bad news for consumers worried about the cost of living; and create complexity, burden and cost for UK businesses. They also fail to take advantage of measures that could support the new Chancellor’s aims for private sector-inspired growth the British economy.”