Leading UK wine retailers are lobbying against the upcoming alcohol duty rise, aiming to reform the system swiftly.
- Retail giants like Majestic Wine and Cambridge Wine Merchants urge intervention before new rules take effect on 1 February.
- The duty freeze extension until 2025 was intended to aid businesses, but the new system increases complexity and costs.
- Retailers highlight that increased costs could jeopardise wine quality and selection for consumers.
- Concerns are raised over the impact on small businesses and independents amidst strained high street conditions.
Major wine retailers in the United Kingdom have launched a campaign to persuade the government to reconsider an impending increase in alcohol duty. The advocacy is a direct response to the government’s plan to implement a new tax system by 1 February of the following year. Retailers including Majestic Wine, Laithwaites, and Cambridge Wine Merchants are at the forefront of this initiative, as reported by The Guardian.
The Chancellor’s Spring Budget had previously extended the alcohol duty freeze until February 2025, a measure designed to allow businesses a period of adjustment to the forthcoming changes. However, with the new system poised to introduce 30 different tax bands for wine, retailers express concern over the resulting increase in operational complexity and costs.
Under the proposed system, the duty payable increases by 2p for every 0.1% increase in alcohol strength. This change is expected to escalate expenses for retailers, which may subsequently affect wine pricing and availability. Retailers warn that these financial pressures could lead to a reduction in the variety of wines available to consumers in the UK.
In an effort to halt the new regulations, both Majestic and Cambridge Wine Merchants have reached out directly to their clientele, urging them to voice opposition to their MPs. The communications emphasise potential negative impacts on the quality and diversity of wine accessible to discerning drinkers.
John Colley, the Chief Executive of Majestic, highlighted the potential repercussions of removing the duty freeze. He noted that small businesses, including over 900 independent wine merchants and importers, might bear the greatest burden. Colley cautioned that these fiscal pressures could hinder growth and threaten livelihoods, urging more support for the high streets during economically challenging times.
The proposed duty rise poses significant challenges for wine retailers, risking adverse effects on the market and consumers.
