On October 30, UK Chancellor Rachel Reeves will announce her first budget, and there is already a great discomfort over the threat of more changes on a wine duty.
Currently, the duty of all wine is between 11.5 % of ABV and 14.5 % ABV is the same amount and is calculated according to a slight dilution, which is presented as part of the new duty system for the governor last year.
As of February 1, 2025, this easement is to be removed, according to conservative government plans. This means that the individual amount of fees paid on wine will be replaced between 11.5-14.5 % ABV-2.67 pounds sterling-up to 30 different amounts due according to the power of wine.
For a 14.5 % ABV bottle, this will witness an increase in the service from 2.67 pounds per bottle to 3.09 pounds.
“Despite the entry of the easement, I felt a lot and the previous government closed the door for us regarding the permanent preservation of it,” says WSTA CEO, CEO of WSTA.
“We hope to understand this government that avoiding the additional red tape assigned will not only benefit British companies and consumers but their treasury funds, (…) If the Labor Party is ready to listen to the question about the industry, we hope that they will see the benefits of keeping things as it is. This will be the main victory for all those concerned to allow companies to grow” to maintain prices for employees and reach more money in early exchange. “
Additional changes will follow the largest increases in individual alcohol fees in nearly 50 years, which entered into force in August 2023.
Besides inflation, this change witnessed fees on a bottle of fixed wine that was paid by 20 %, or 0.44 pounds, based on the average alcohol strength by 12.5 % ABV. The duty of a bottle decreased by 12 % of ABV wine by 0.19 pounds under the new system.
Treasury receipts by 10 %
According to WSTA, alcohol sales decreased in the United Kingdom after raising taxes last year. The latest HMRC numbers indicate that from September to August, on an annual basis, alcohol fees increased to a decrease in tank revenue of 1.3 billion pounds (10 %) – which works almost the same amount such as providing winter fuel allowance.
Nicolas Pitsz, CEO of Wine GB, says the changes received were also appointed to take advantage of low -strength drinks, a step that will not affect the wine.
“By implementing ABV domains to calculate alcohol fees, the government also targets wine industry directly,” she says. “It is impossible to reach the third division cutting point for a 8.5 % less service than ABV.
For some English wine producers, this can be a silver lining, believes that Windy Ontoit, co -founder of the English Vocal Wine Product, Ambril.
“No one wants an additional tax. If the duty rises, the price of our wine rises, and our sales decrease. It is simple. However, we have a small chance here. With wine in the UK naturally decreases from alcohol from other places, the low service rate does not allow a drop in the price that consumers welcomes.
Warning of high prices
But for those who import higher power in the UK, the changes will not be inevitable.
Retail wine traders, including Majestic, Laithwaites, The Wine Society, and Cambridge Wine Merchants, are already warning customers that high prices are on the horizon, if changes continue.
An email to a master's and Cambridge Wayne Tarjon warned on October 4: “While the policy was launched, the Treasury had a declared goal to create a work system that would be simpler and more just for the wine companies that must be managed. To develop the systems required to deal with the new approach, it is possible that the continuous administrative costs will collide with similar amounts on an annual basis.”
WSTA has made a campaign to make this easement permanent, but there has been no “any indicator” yet that he had any intention to do so.
“Beverage producers should be concerned that previous government expectations that have failed to take into account the impact of increases on the duty,” Bell explains. “This year has witnessed the most cruel evidence that consumers are very sensitive to high prices. In the wake of increases in double numbers in service last year, the demand decreased significantly, as well as alcohol fees receipts to the treasury. If the government is really serious in protecting public spending, then the opportunity in this budget must be seized to re -evaluate the old prediction model.
Was the wine was not fairly targeted?
Bings believes, noting that the taxes imposed on alcohol in the UK does not increase, but the UK is one of the few wine -producing countries in Europe that meets the duty of consumption on local products at all.
“10 European countries do not apply a tax duty to locally produced sparkling wine (France only applied a rate of 0.07 euros in 2022), while 15 do not apply to the duty of the wine that was produced locally (with France's application at a rate of 0.03 euros),” she says. “We are calling on the government to settle the stadium so that wine in English and Wallisy can compete somewhat with other wine at the local and international levels.”
WSTA also called for freezing to current alcohol tax rates for at least two years, “confirmation” and the end of the graphic seal system for spirit drinks, which the previous government said will be absent in March this year.
Can the tasks be expected? It was not excluded.
“There were reports that Chancellor, Rachel Reeves, was considering increasing fees, but we are unlikely to know him with certainty until the budget day,” Bell added. “One of the best ways to hear your views is to call MS Local MP and clarify the damage that will be caused by the rise of another duty in your work.”
Bell's concerns said that she was “very anxious” about reports that the chancellor is considering increasing alcohol fees in her budget.
She said: “We know that the increasing costs of duty have proven reverse results for the treasury.” “With the re -consultant,” it would be appropriate to focus on the measures that work and income in light of the fact that the treasury revenues decreased by 1.3 billion pounds, which decreased the duty of wine by 238 million pounds, as a result of another height.
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