The UK wine sector is voicing strong opposition against the government’s proposed alcohol duty rise, leveraging industry veteran support.
- Major wine retailers such as Majestic Wine and Cambridge Wine Merchants are leading the campaign against the amplified duty regimes.
- Proposed duty changes are expected to introduce significant complexity, increasing from a single tax band to 30 for wines.
- Retailers express concern over potential price hikes, with duty increasing by 2p for every 0.1% rise in wine strength.
- The initiative to rollback these regulations includes mobilising customer support to contact local MPs.
In the heart of the UK’s wine retail sector, opposition is mounting against the government’s planned increase in alcohol duties. The campaign, spearheaded by prominent retailers such as Majestic Wine and Cambridge Wine Merchants, seeks to prevent the introduction of a new, more complex alcohol duty system slated for implementation in early February of next year. The existing freeze on alcohol duty, announced earlier this year by the Chancellor in the Spring Budget, is set to expire in February 2025, and the changes proposed could significantly affect the sector.
The adjustments entail an expansion from one to thirty different tax bands for wine alone, which represents a substantial increase in the administrative burden for retailers. Additionally, the duty charged on wine will increase by 2p for every 0.1% increase in alcohol strength, a change that retailers warn could escalate costs across the board. This complex tax system is seen by many as a barrier to both growth and sustainability within the industry.
Retailers have taken proactive steps by directly engaging with their consumer base, urging them to express their concerns to Members of Parliament. In a bid to gather public support, Majestic Wine, among others, has communicated with customers through email. The message highlights potential negative impacts on the availability and diversity of wines on offer, and the possible cessation of imports of popular wines due to increased regulatory burdens.
Majestic Wine’s Chief Executive, John Colley, has voiced his apprehensions, stating that the termination of the alcohol duty freeze could critically harm small businesses. Colley remarked that it would “restrict growth and threaten people’s livelihoods,” emphasising the potential damage to the approximately 900 independent wine merchants across the UK.
The consequence of these duty increases is a multi-layered concern that blends economic implications with consumer experiences. As the campaign garners momentum, the wine retail sector is calling for a reevaluation of the duty structure to avert what they perceive as an impending crisis.
The wine retail sector continues to rally against the proposed changes, advocating for measures that support rather than stifle industry growth.
