Alcohol duty escalator opponents confront MPs

Members of the drinks industry made their case against the UK Government’s alcohol duty escalator to politicians this week.

Supporters of the Call Time on Duty Campaign addressed Parliamentarians this week

Leading figures across spirits and wine sectors attended met with MPs to stress how they believe the economy could benefit if the current automatic tax increase on spirits and wine was binned.

After commissioning research from Ernst & Young (EY), the WSTA launched the Call Time on Duty campaign, urging the Chancellor of the Exchequer George Osborne to introduce a freeze on alcohol duty during the 2014 Budget and scrap the duty escalator

Since its introduction in 2008, the duty escalator has increased tax on alcohol by 2%, yet the industry body claims this research shows that discarding the measure would boost public finances by £230 million and create 6,000 new jobs.

Addressing Parliament, Miles Beale, chief executive of the WSTA, said: “The alcohol duty escalator is a super tax on a great British industry, including a large number of SMEs across the country, our pubs and restaurants, and many hard-pressed consumers.

“The impact of the escalator means that an important sector of the British economy, of which we should all be proud, is fighting to contribute with one hand tied behind its back.”

Campaigners told members of the House that since the alcohol duty escalator was introduced in 2008, tax on spirits has increased by 44%, while wine tax rose by 50%.

Priti Patel MP described the automatic tax increase as a “punishing regime” and a “barrier to growth”.

“We have seen the benefits to the beer industry of beer duty being scrapped and it is now time for the Government to look again at the tax regime on spirits and wines,” he said.

The Call Time On Duty Campaign is being supported the Wine and Spirit Trade Association, the Scotch Whisky Association and the TaxPayers’ Alliance.