UK wine industry ‘under fire’ as government prepares to increase alcohol duty

The UK wine industry is under fire due to upcoming changes to alcohol duty, according to a leading trader.

Steve Finlan, boss of the Wine Society – which dates back to 1874 and has 180,000 members – said tax rules will drive up prices for customers.

And he accused the government of ignoring the industry’s pleas amid fears some bottles could disappear from British shelves altogether.

Finlan’s comments echo those of other big names including Majestic Wine and Laithwaites.

From February 1 next year, an alcohol tax regime will introduce more than thirty different tax brackets, seriously complicating the system.

According to the Wine and Spirit Trade Association (WSTA), this will impact the level of duty paid on wines between 11.5 and 14.5 percent alcohol by volume (ABV), which represent around 80 percent of the UK market.

For a bottle of wine with an alcohol content of 14.5 per cent, duty would rise from £2.67 to £3.09.

“The British wine trade is under siege,” Finlan told the Mail.

‘The new duty system will have an impact on prices in our sector and will result in higher costs for UK wine consumers.

‘If the new government is serious about listening to the business community, they need to recognize an entire industry united against the proposed new duty regime.’

Industry bosses fear consumers will shy away from higher prices and spend less, ultimately reducing tax revenues for the government.

The Wine Society, which sells products ranging from its own burgundy at £7.95 a bottle to a £6,500 bottle of Jean-Louis Chave Hermitage, has written to its members to warn them.

Finlan warned of a “more expensive and complex” system as a result of the changes introduced by the last Tory government, telling customers in an email: “The administrative burden will have an impact on prices in our sector.

We have warned the new government about the negative consequences of the proposed tax regime, but they are not listening. There is not a single wine company in Britain that supports this new approach.”

Other big names calling for a turnaround include Majestic Wine, Laithwaites and Cambridge Wine Merchants.

Tamara Roberts, chief executive of Ridgeview Wine Estate – a winery in East Sussex – said: ‘It is simply too complicated and will create confusion for both consumers and producers.’

Chancellor Rachel Reeves has also not ruled out raising alcohol taxes, but that an increase would be “really punitive”, said Pepper Sells, the boss of wine gifts company Di-vine.

A Treasury spokesman said: ‘We do not comment on speculation around tax changes outside of budget events.’