WSTA call for ‘fresh start’ with Labour government

The Wine and Spirit Trade Association (WSTA) has called on the incoming Labour administration to work with the industry to promote growth, with the Campaign for Real Ale (CAMRA) also welcoming the new government. 

With the Labour Party winning one of the largest majorities in its history, the WSTA has called on the new government to put the wine and spirits trade at the centre of its programme for growth.

During the election cycle, incoming Prime Minister Keir Starmer and future Chancellor of the Exchequer Rachel Reeves were keen to focus on economic growth as a key part of their administration.

The WSTA outlined how in 2022 the UK wine and spirit industry generated £22bn of Gross Value Added (GVA) and contributed £76.3bn in economic activity, as well as almost half a million jobs.

Urgent action

But it said that “urgent action” needed to be taken now to halt “unnecessary changes” to taxing wine in February 2025, and to “clear up” confusion over waste packaging regulations.

The incoming changes to wine duty could be “fatal” for some businesses, the WSTA has warned, especially SMEs, and will result in further prices rises for consumers.

Miles Beale, chief executive of the WSTA, said he was “looking forward” to working with Labour, and highlighted how the party had “rightly” called for closer working between the government and business to deliver economic growth.

Beale said: “It feels like a fresh chapter and a chance to move away from the increasingly disconnected and heavy-handed approach of the previous government towards a closer and more collaborative working partnership with Labour.”

“Labour has pledged to support business with a stable policy environment and an approach to business taxation that allows long-term planning. We agree and are calling on new Ministers to stick to these principles for then lifetime of the new Parliament – starting with making permanent the temporary easement for wine duty and delaying the ‘Extended Producer Responsibility (EPR)’ scheme to ensure it is fit for purpose.

“The new government needs to demonstrate quickly its commitment to deliver the stability that they have promised for business by answering calls from our industry for support, partnership and clarity.”

Hand in hand

Beale said the WSTA wanted to work “hand-in-hand” with Labour, especially on the February tax changes, which will see the single duty on wine between 11.5% and 14.5% ABV replaced with 30 different amounts.

The WSTA has described the move, brought in by former PM Rishi Sunak when he was Chancellor, as “un-administrable” and “sheer lunacy” by WSTA members.

Beale said: “Retaining the easement would do exactly what Labour has promised for a new business tax regime: it puts a stop to chaos and delivers a strategic approach.”

Waste

The association also said it wants to work on reducing the impact of packaging waste, and wants to work with government on “realistic” timeframes for the ambitious package of measures set out under the Extended Producer Responsibility (EPR) policy.

Businesses in the UK are already under obligations under EPR, yet much of the detail needed to help businesses plan and budget for the new rules, set by the previous government, has not yet been issued. It also remains unclear what Labour would change.

The WSTA is calling for the scheme to be delayed, and no firm date proposed for its introduction until a clear implementation pathway is agreed between Government and business.

CAMRA

Commenting on the news that the Labour Party has won the UK General Election, CAMRA Chairman, Nik Antona said that it looked forward to working with the new government on pubs and representing producers of beer, cider and perry.

Antona said it was “heartening” to hear Labour’s five-point plan to “end the decline of British locals” during their election campaigning, and he said he “hope that Labour will implement these proposals as soon as possible”.

He also said he hoped there would be greater planning protection for pubs and social clubs from unfair demolition and also for business rates reform.

“We also welcome plans to introduce a genuine community right to buy, which will help many loved pubs stay open and create exciting new opportunities for the sector to thrive,” he added.