WSTA meets Treasury to call for 2% tax cut

The Wine and Spirit Trade Association (WSTA) met with the Treasury on Monday to present their 2015 Budget submission asking for a 2% cut in wine and spirits duty.

The WSTa met the Treasury to call for a 2% reduction in wine and spirits duty

In a meeting with Priti Patel, MP, Exchequer Secretary to the Treasury and senior Treasury officials, the WSTA argued a tax reduction would support industry growth, jobs and rebalance the economy.

The body claims a 2% reduction in tax on wine and spirits would generate a further £3 billion for the economy and £1.1bn in additional tax income.

Furthermore, the group asked for the government to make trade and investment a priority for the spirits industry, thus protecting its interests in trade negotiations and offering tax incentives to microdistillers.

“Despite the fantastic contribution the UK wine and spirits industry makes to the Treasury, we have still faced a difficult climate in recent years,” commented Miles Beale, WSTA chief executive. “Sales and consumption in the UK has been in decline and the impact of seven years of the Alcohol Duty Excalator has taken its toll on producers and retailers, who have seen their margins squeeze and on consumers who have seen prices rise higher than inflation as a result.

“The government’s Budget, presented by the Chancellor this year, will therefore have a profound impact. Not just on the wine and spirits industry but the workers within it, the taxation the Government brings in and the tens of millions of consumers we ultimately serve.

“This is why I am extremely excited about today’s opportunity to outline our 2015 Budget submission.”

According to the WSTA, the UK wine and spirits industry is worth almost £45bn and delivers £14.5bn in tax revenue for the Treasury.

In addition, the industry provides 600,000 jobs in the UK encompassing the British pub and hospitality sector.

“This submission looks to set out the facts about the industry including the economic, social and fiscal contribution it makes to the UK,” added Beale.

“It outlines what the government can do to help the industry reach its full potential by growing and creating jobs and what is being done to ensure that alcohol is being produced, sold and consumed responsibly.”