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WSTA issues final call for chancellor to freeze spirits duty
The Wine and Spirit Trade Association has issued one final plea to the UK chancellor to freeze wine and spirits duty in tomorrow’s Budget.
Chancellor Philip Hammond is facing calls to freeze alcohol duty ahead of the Christmas period
Currently, 76% of what British consumers pay for an average priced bottle of spirit and 56% for an average priced bottle of wine goes straight to the Treasury.
The latest findings from the WSTA show that of the £173.83 (US$230) an average British household will spend on their Christmas drinks, £92.95 (US$123) of this will go to the treasury in VAT and duty rates.
This means that tax now accounts for 53.5% of the price of our Christmas drinks, up from 51% last year.
In contrast, it is estimated consumers in France will pay £27 (US$35) less for their Christmas drinks, with just 32% of the cost made up of taxes.
These calculations are based on a typical festive season shop, consisting of five bottles of wine, two bottles of Champagne, two bottles of sparkling wine, three bottles of spirits, two bottles of Port, 24 cans of beer and 12 ciders.
Miles Beale, chief executive of the WSTA, said: “Comparing the wine and spirit tax regime in the UK to that in France puts the UK’s excessively high rate of excise duty firmly in the spotlight. The Treasury will be taking more money than ever off of British businesses and consumers this Christmas if planned duty hikes go ahead.”
These inflation increases are part of a government policy planned to last for the duration of this Parliament, meaning the Government may make as much as £1.9 billion (US$2.5bn) in alcohol duty over the next five years.
The UK alcohol industry is one of the most heavily taxed in Europe, with British drinkers paying 68% of all wine duties and 27% of all spirits duties collected by the 28 member states of the European Union.
The wine and spirit industry plays a hugely important role in the UK’s economy, directly and indirectly supporting 554,000 jobs and generating £50bn (US$66bn) in economic activity.
In the lead up to the Budget tomorrow (22 November), Hammond has repeatedly faced calls to freeze duty leading into the Christmas period.