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WSTA pens letter to Chancellor opposing alcohol duty u-turn

The letter published today, Tuesday, 15 November comprises a total of 116 signatories, as the industry braces itself for a double-digit tax rise following the Autumn Budget this week.

Announced on 17 October as part of sweeping U-turns on the recent government mini-budget, the reversal of the freeze, which was to last a year from 1 February 2023, has been billed as saving the Treasury around £600m a year.

However, industry organisations including the WSTA have challenged the reversal, arguing that the added tax burden will be both disruptive and unproductive for drinks trade and Treasury alike.

• READ MORE: As alcohol lags behind on-trade recovery, where does the trade go from here?

Miles Beale, chief executive of the Wine and Spirit Trade Association, said: “This could not have come at a worse time for the alcohol trade with bars and restaurants, producers and suppliers still reeling from pandemic lockdowns and having to manage ever-increasing costs and global supply chain issues.

“Cash-strapped consumers will be picking up the bill with prices of their favourite drinks set to soar next year. We are calling on Jeremy Hunt to throw us a lifeline, there is still time to bring back the duty freeze.

“History has shown that freezing alcohol duty does not negatively impact on Treasury coffers, over the past five years during a stable period for alcohol duty, government income from taxing alcohol has increased by 18% – because of, not despite, duty freezes.”

The u-turn was described as a “huge blow” by the British Beer and Pub Association, which said the reversal would now add an additional £300m in costs to an already hard-pressed sector, with UK Hospitality also adding its voice to those describing it as an “unfair burden”.

The letter published in The Times could be found here.

• Miles Beale
• WSTA
• Alcohol Duty
• UKHospitality
• British Beer and Pub Association
• The Chancellor
• Jeremy Hunt
• Tax Reform