Home Business News UK wine businesses call on Chancellor to put a cork in wine duty hikes

UK wine businesses call on Chancellor to put a cork in wine duty hikes

by LLB Reporter
15th Nov 17 11:47 am

SMEs hand 40 per cent of their turnover to the Chancellor in duty alone

UK wine businesses have joined forces to call for a freeze to wine duty at the Budget next week.

20 of Britain’s wine businesses have signed a letter written by the Wine and Spirit Trade Association calling for Philip Hammond to scrap planned tax rises and back the industry which supports over 277,000 UK jobs.

The significant tax burden placed on wine importers, bottling plants, distributors, retailers and logistic companies is stifling business at a time when wine prices are already at an all-time high.

In March the Chancellor increased wine duty by 3.9% which added 8p to a bottle of still wine and 10p to sparkling. Yet despite the rise, the Chancellor now plans to increase wine duty again, just 8 months after the last one, by 3.4% in the November Budget adding another 7p to still and 9p on sparkling.

The sneaky inflationary increases are part of a government policy plans to raise wine duties by 3% for every year of this Parliament – meaning by 2022 industry will be hit with an additional £1.2billion in new duty collections.

But it is not just the businesses who will suffer from another duty hike. The WSTA market report to be released next month is set to show a 22p increase on the average price of a bottle of wine to £5.62 this quarter, compared to the same period last year. This is a 4.2% increase on last year already, before the planned 7p rise in the Budget next week.

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