WSTA repeats tax plea as wine trade rallies

The Wine and Spirit Trade Association has once again called on taxes in the UK drinks trade to be cut, as figures reveal wine consumption in the UK is set to rise.

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

Following a decline of more than 10% since 2008, what has been dubbed the UK’s “wine recession” is set to end with a forecasted 3.3% increase in wine consumption over the next four years, according to new research by Vinexpo.

However, with the Treasury currently taking 56% of the price of a bottle in taxes, Office of Budget Responsibility figures reveal the Chancellor will be set to take an additional £300 million in duty in the 2015/2016 financial year from increased sales.

If duty on wine is frozen, by the end of the next Parliament, the Chancellor will still be receiving £1.7bn in extra wine duties per year, reflecting a 45% increase between 2014/15 and 2019/20. This increase amounts to a total of £4.9billion over the course of the next Parliament.

This equates to £33 per UK adult per year in 2019/20 compared to 2014/15, according to the WSTA.

Miles Beale, CEO of the WSTA said, “While it is a hugely positive sign that growth is returning to the wine industry, we want to see the UK’s burgeoning wine industry benefit, not George Osborne.

“Treasury tax on alcohol has simply gone too far. We welcomed George Osborne’s decision to abolish automatic, above inflation increases at Budget 2014 but more action is needed. The additional £300 million would go much further next year in terms of increased growth and jobs.

“Research conducted by EY shows that a cut in duty would lead to almost £4billion of extra economic activity and more than 20,000 jobs across the industry.

“This is why we are calling for a 2% cut on alcohol duty at the next Budget; so that consumers and companies, as well as the Treasury, will have a bit more cash in their pockets”.

The WSTA and the Scotch Whisky Association, in partnership with the Taxpayers’ Alliance, recently launched their ‘Drop the Duty!’ campaign’, calling for a 2% cut in alcohol duty at the next UK Budget in March 2015.