The UK wine industry faces impending challenges as significant changes to alcohol duty are planned.
- The new duty regime, effective from 1 February 2025, will introduce over 30 tax bands, greatly complicating the current system.
- Key industry players, including The Wine Society and Majestic Wine, warn these changes could lead to increased prices and reduced wine availability.
- Wines with alcohol content between 11.5% and 14.5% ABV, comprising 80% of the market, will be most affected.
- Wine retailers are actively lobbying against the change to prevent potential negative impacts on high streets and consumer choice.
The introduction of more than 30 different tax bands for alcohol duty from February 2025 poses a significant challenge for the UK wine industry. The system’s increased complexity stands to disrupt the market, as voiced by key organisations within the sector.
Steve Finlan, CEO of The Wine Society, highlighted the potential for price hikes, stating that these changes could lead to some wines disappearing from UK shelves. With 180,000 members, The Wine Society is among several influential bodies, including Majestic Wine and Laithwaites, raising concerns about the government’s approach.
A particular focus of the industry’s concern is the duty impact on wines with alcohol content ranging from 11.5% to 14.5% ABV. These wines account for approximately 80% of the market, making the potential duty increase from £2.67 to £3.09 per bottle a pressing issue.
Industry leaders fear that such increased costs could deter consumers, resulting in reduced spending and decreased tax revenue for the government. Majestic CEO John Colley expressed a grave outlook, suggesting the changes could stifle growth and threaten livelihoods, especially during a time when high street support is crucial.
In response to the looming changes, wine retailers have commenced lobbying efforts to halt the duty hike. This includes direct appeals to consumers for support in contacting MPs to revise the proposed regulations before their implementation. Notably, communications have expressed concerns regarding the negative impact on wine quality and selection, warning that some producers might cease exporting to the UK altogether due to added administrative challenges.
The impending changes to alcohol duty represent a critical juncture for the UK wine industry, necessitating urgent consideration and action.
