The Wine and Spirit Trade Association has welcomed the
Chancellor’s decision to listen to British business and UK
consumers by freezing wine and spirit duty.
The announcement comes after a WSTA campaign called on the
Chancellor to support the wine and spirit industry after the
pandemic led to the “crushing, continuing closure” of the
hospitality sector.
A freeze will allow businesses to “recover, rebuild, create jobs
and - in time – replenish revenues to the Treasury” and will keep
prices down for cash-strapped consumers.
The decision by MP to freeze alcohol duty could not have come at a
better time for the UK wine and spirit industry, which not only
has to deal with the chaos created by Covid-19 but is also
navigating a new trading landscape post Brexit.
The freeze is a vital lifeline which will help our talented SME
British distillers and English wine makers to invest and grow, as
well as help save jobs in the UK’s huge wine importing and
exporting industry.
Miles Beale Chief Executive of the Wine & Spirit
Trade Association, said:
“The decision to freeze wine and spirit duty comes as a huge
relief for British businesses, pubs, restaurants and its
suppliers following the crushing – and continuing - closure of
the hospitality sector, for months on end, during the pandemic.
Chancellor seems to “get it”. He understands that supporting our
industry will allow it to recover, rebuild, create jobs and - in
time – replenish revenues to the Treasury. He has also shown he
is in touch with men and women from all walks of life who want to
enjoy their chosen tipple without getting stung by further tax
hikes.
We will all raise a glass to the Chancellor tonight – and look
forward to more permanent support for the sector following the
review of alcohol taxation.”
Recent HMRC figures show the number of distilleries registered in
2020 shot up to over 560 as the UK boosted its distillery numbers
by a record breaking 124 last year, doubling the number of UK
distilleries in four years.
Despite the pandemic bold investors have decided to back British
business and await the re-opening of the hospitality sector to
achieve their full potential. The UK spirit industry is worth
around £11 billion in economic activity and supports some 230,000
jobs.
The UK wine industry brings in around £11 billion to the UK
economy and supports some 130,000 jobs. As well as the UK being
the home of some of the world’s biggest bottling plants it also
has a thriving English and Welsh wine industry which now boasts
763 vineyards in the UK and 164 wineries. This rapidly growing
industry also represents a changing UK agricultural sector and
one that offers high quality rural jobs that boost local
economies, as well as supporting biodiversity and sustainability.
The measures taken by the Chancellor today means a saving in duty
payments of £100 million for wine and spirit businesses. This is
the amount saved based on the assumption that Government was set
to carry out plans to increase excise duty by inflation at 1.4%
RPI.*
- Duty on a 750ml bottle of wine remains at £2.23
- Duty on a 750ml bottle of sparkling remains at £2.86
- Duty on a 750ml bottle of fortified wine remains at £2.98
- Duty on a 70cl bottle of vodka at 37.5% remains at £7.54
- Duty on a 70cl bottle of gin at 40% remains at £8.05
Also announced today, the Government have given a further
extension to the VAT cut for the hospitality sector, but this
does not include alcohol.
Miles Beale, added:
“We also welcome the extension to the VAT cut for the hospitality
sector, but it is disappointing that the Chancellor did not
extend this to include alcoholic drinks, which would have given
the trade a real boost when they are finally allowed to re-open
their doors to the public.”
Notes to editors:
*UK
businesses paid £7.6 billion in wine and spirit duty according to
the latest alcohol duty bulletin.With RPI at 1.4% that means
a freeze in duty saved for wine and spirits is £106 million.
