WineGB: Government should spend duty hike cash on local market
WineGB, the trade organisation representing Britain's wine industry, has warned the UK Government against being "penny wise and pound foolish" with cash generated by its newly-imposed duty hikes. The post WineGB: Government should spend duty hike cash on local market appeared first on The Drinks Business.
WineGB, the trade organisation representing Britain's wine industry, has warned the UK Government against being "penny wise and pound foolish" with cash generated by its newly-imposed duty hikes.
From 1 February the UK Government has imposed new excise duty rates on wine, coinciding with the end of the wine easement.
The Treasury’s overhaul of wine taxation impacts bottles between 11.5% and 14.5% alcohol, a category that accounts for 85% of all UK wine sales. This shift introduces a structure of 30 duty charges within this range.
As such, a 14.5% red, for instance, will see duty rise from £2.67 to £3.21 per bottle — a 20% jump. Factoring in the increases from August 2023, duty on the same bottle will have risen by 44%, or 98p, in 18 months.
WineGB has now called on the Government to spend a "small part" of wine duty hikes on growing the domestic market.
The organisation submitted its proposal to the Comprehensive Spending Review, which will be used to set future budgets for Government departments. The consultation closed on Sunday 9 February.
The UK is one of only a few countries in Europe that levies excise duty on domestic wine production — which WineGB argues puts English and Welsh wine producers "at a significant competitive disadvantage".
Nicola Bates, CEO of WineGB, said: “We understand that times are tough, and budgets are tight. Our industry has already been asked to tighten its belt due to multiple increases in tax, with the compounding impact of duty. No other domestic wine producer faces such Government burden while managing such varied economic headwinds."
WineGB claims that investing in the domestic wine industry would go some way towards "rebalanc[ing] the substantial impact of the wine duty increases on the sector by ensuring that money goes to support industry growth".
"When there is such interest in our wines, the Government should help us take advantage of it," said Bates, warning that the Government should refrain from being "penny wise and pound foolish".
She said: "We are the fastest growing agricultural sector in the UK and provide multiple levels of skilled and semi-skilled rural jobs through the creation of a sustainable, local product. We are calling on the Government not to under-value our current and future economic contribution.”
Policies announced in the Autumn Budget — including duty increase, elevated National Insurance contributions and changes to the minimum wage and inheritance tax — have all negatively impacted the domestic wine industry in the UK. WineGB is therefore calling on the Government to mitigate these additional costs by dedicating more cash and support to the sector.
WineGB is asking the Government to:
From 1 February the UK Government has imposed new excise duty rates on wine, coinciding with the end of the wine easement.
The Treasury’s overhaul of wine taxation impacts bottles between 11.5% and 14.5% alcohol, a category that accounts for 85% of all UK wine sales. This shift introduces a structure of 30 duty charges within this range.
As such, a 14.5% red, for instance, will see duty rise from £2.67 to £3.21 per bottle — a 20% jump. Factoring in the increases from August 2023, duty on the same bottle will have risen by 44%, or 98p, in 18 months.
WineGB has now called on the Government to spend a "small part" of wine duty hikes on growing the domestic market.
The organisation submitted its proposal to the Comprehensive Spending Review, which will be used to set future budgets for Government departments. The consultation closed on Sunday 9 February.
The UK is one of only a few countries in Europe that levies excise duty on domestic wine production — which WineGB argues puts English and Welsh wine producers "at a significant competitive disadvantage".
Nicola Bates, CEO of WineGB, said: “We understand that times are tough, and budgets are tight. Our industry has already been asked to tighten its belt due to multiple increases in tax, with the compounding impact of duty. No other domestic wine producer faces such Government burden while managing such varied economic headwinds."
WineGB claims that investing in the domestic wine industry would go some way towards "rebalanc[ing] the substantial impact of the wine duty increases on the sector by ensuring that money goes to support industry growth".
"When there is such interest in our wines, the Government should help us take advantage of it," said Bates, warning that the Government should refrain from being "penny wise and pound foolish".
She said: "We are the fastest growing agricultural sector in the UK and provide multiple levels of skilled and semi-skilled rural jobs through the creation of a sustainable, local product. We are calling on the Government not to under-value our current and future economic contribution.”
Policies announced in the Autumn Budget — including duty increase, elevated National Insurance contributions and changes to the minimum wage and inheritance tax — have all negatively impacted the domestic wine industry in the UK. WineGB is therefore calling on the Government to mitigate these additional costs by dedicating more cash and support to the sector.
WineGB is asking the Government to:
- Recognise the agriculture, agri-food, and beverages sectors – in particular viticulture – as key growth sectors and include them in its growth strategies and economic plans. WineGB is concerned that they do not feature in the Government’s Industrial Strategy and the consequences this has when earmarking resources.
- Allocate funding and co-financing support to promote wine-related investment, research, innovation, infrastructure development, education, and export expansion. This includes implementing and making permanent the £1.5 million Future Winemakers' Scheme announced by the previous Government at the WineGB Industry Conference.
- Implement policies that increase market access, reduce regulatory burdens, assist expansion, and promote sustainable practices. This places value on British produce. Provide support for international expansion. This includes international category-wide campaigning to take advantage of demand for GB wines.
