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Conservatives must ‘eliminate any risk’ of no-deal Brexit
Following the Conservative party’s win in the UK general election today (13 December), the Wine and Spirit Trade Association (WSTA) has urged the new government to remove any risk of a no-deal Brexit.
Conservative leader Boris Johnson has pledged to “get Brexit done”
The Conservatives, led by UK prime minister Boris Johnson, retained control of parliament after gaining the majority of seats – 364 – in the election, which took place yesterday (12 December). The Labour party, helmed by Jeremy Corbyn, won 203 seats – its worst result since 1935.
The early election was triggered after a period of parliamentary deadlock on how to proceed with Brexit, which currently has a deadline set for 31 January 2020.
As part of the Conservative manifesto, Johnson pledged to review UK alcohol taxation – a move that was welcomed by the Scotch Whisky Association (SWA) last month (November).
Currently, tax on Scotch in the UK stands at 72%, meaning around £3 in every £4 spent on Scotch whisky in the UK goes to the HM Treasury in excise and VAT. Scotch is taxed more per unit of alcohol than any other alcohol category in the UK – 16% more than wine.
Miles Beale, WSTA chief executive, said: “We look forward to working with the new government to end the crippling uncertainty which has plagued UK businesses since the vote to leave the EU.
“It is key that we complete the ambitious Brexit timetable with a withdrawal agreement that supports UK businesses and eliminates any risk of [a] ‘no-deal’ scenario.
“We welcome the government’s pledge to back British business and this can start immediately by cutting wine and spirit tax. A cut to all hospitality business rates would also provide a welcome boost to the struggling high street.”
Patricia Callan, director of Drinks Ireland, is calling on the new government “to show support for Northern Ireland’s (NI) drinks industry by reducing the burden of excise on alcohol sales”.
The UK has the fourth highest spirits duty rate in the EU, after Sweden, Finland and Ireland.
She said: “This means that the nearly one million cases of NI-produced spirits that were sold in the UK market in 2018 faced this high level of taxation.
“It’s vital that the government reforms the UK alcohol excise system with a view to reducing the burden of excise on alcohol sales in the UK so as to sustain consumer confidence and spending patterns, support the Northern Ireland drinks industry and ensure increasing revenue to the exchequer.
Like the WSTA, Callan also warned that the government should “avoid a hard, no-deal exit from the EU at all costs”.
She added: “Post-Brexit, frictionless trade and market access including within the UK, between NI and Great Britain, within the island of Ireland and between NI and the rest of the EU is vital.”
The Spirits Business has contacted the SWA for comment. For an in-depth look at the effect the UK election could have on the spirits industry, see the January 2020 edition of The Spirits Business magazine.