UK economy boosted by spirits duty freeze
In the six months since the UK government put a freeze on spirits duty, the industry has added £1.48 billion to the British economy – up £54m on the same period last year.
Following a cut in spirits duty in the 2016 budget, spirits revenue increased by 4.1% on the previous year – equivalent to £125m from April 2015 to March 2016 inclusive.
“Evidence shows that freezing or cuts to duty are not only popular, but have led to greater revenue for the Exchequer, more jobs, greater investment by the industry and a better deal for consumers, said Miles Beale, chief executive of the Wine and Spirit Trade Association.
“The industry’s size and contribution to economic activity is regularly vastly underestimated.
“Through distilleries, vineyards, bottling plants, logistic companies, wholesalers, distributers and retailers it supports nearly 600,000 jobs in the UK, contributes £45.5bn in economic activity and pays over £15.5bn in duty, VAT, corporation and employment taxes.
“The industry has faced difficult trading conditions recently with the fall of the pound and the uncertainty of trade post-Brexit. Now more than ever the industry asks for government’s support to allow the wine and spirit industry to invest, grow exports and create more jobs. And these figures show that reducing the wine and spirit industry’s high duty burden is an effective way to do that.”
The tax and VAT levied on a bottle of spirits currently stands at 74%.