WSTA piles pressure on UK Treasury

The Wine and Spirit Trade Association (WSTA) is today meeting with the Treasury to present their 2015 budget submission – which calls for a 2% cut in wine and spirits duty “to help support growth, jobs and rebalance the economy”.

Miles Beale, Chief Executive, Wine and Spirit Trade Association (left) and David Frost, Chief Executive, Scotch Whisky Association (right) launching the ‘Drop the Duty!’ campaign calling for a 2% cut in alcohol duty

The WSTA, which represents 340 member companies who produce, import and sell wines and spirits in the UK, has set out in its submission what the government can do to “help [the industry] reach its full potential”.

In a meeting with Priti Patel MP, exchequer secretary to the Treasury and other senior Treasury officials, the WSTA is expected to call on the government to call for:

• A “modest cut” to duty of 2%, unlocking over £3bn in economic activity and £1.1bn of additional tax income
• Tax incentives to vineyards that “invest in the long term future of the industry”, give the industry “the voice it deserves on the international stage” and commit to using English wine in Government receptions
• More support for the UK spirits industry by making it a trade and investment priority, protecting its interests in trade negotiations and offering tax incentives to micro distillers
• More support for the pub and hospitality sector by working with industry to “help build the skills of the workforce, continue to appoint a pubs minister and continue to work collaboratively with the industry”
• Continue to invest resources to tackle alcohol-related fraud, including continuing the anti-fraud taskforce and give alcohol related fraud a higher priority.

WSTA Chief Executive Miles Beale said: “Despite the fantastic contribution the UK wine and spirits industry makes to the Treasury, we have still faced a difficult climate in recent years. Sales and consumption in the UK has been in decline and the impact of seven years of the Alcohol Duty Escalator has taken its toll on producers and retailers, who have seen their margins squeezed, and on consumers who have seen prices rise higher than inflation as a result.

“The government’s budget, presented by the chancellor this year, will therefore have a profound impact. Not just on the wine and spirits industry but the workers within it, the taxation the government brings in and the tens of millions of consumers we ultimately serve.

“This is why I am extremely excited about today’s opportunity to outline our 2015 Budget submission.”

There are 30 million consumers of wine and spirits in the UK according to the WSTA. These consumers currently pay “nearly 60% tax on an average priced bottle of wine and nearly 80% on a bottle of spirits.” Recent polling from the WSTA found that 64% of consumers think this is too high.

The UK wine and spirits industry is worth nearly £45bn in terms of economic activity to the UK and generates £14.5bn in tax revenue for the Treasury.