UK wine industry ‘under siege’ as government prepares to increase alcohol taxes

The UK wine industry is “besieged” due to upcoming alcohol tax changes, according to a leading trader.

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

And he accused the Government of ignoring industry requests over fears that some bottles would disappear from UK shelves entirely.

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 30 different tax bands, greatly complicating the system.

This will affect the amount of duty paid on wines with between 11.5 per cent and 14.5 per cent alcohol by volume (ABV), which make up around 80 per cent of the UK market, according to the Wine Trade Association. Wines and Spirits (WSTA).

A bottle of wine at 14.5 per cent ABV would see a duty increase from £2.67 to £3.09.

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

‘The new tax system will impact prices across our industry and result in higher costs for UK wine consumers.

“If the new government really wants to listen to businesses then it must recognize an entire industry united against the proposed new tariff regime.”

Industry bosses fear consumers will resist higher prices and spend less, ultimately reducing the Government’s tax revenue.

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

Warning of a “more expensive and complex” system due to changes introduced by the last Conservative government, Finlan told clients in an email: “The administrative burden will have an impact on prices across our industry.”

We have warned the new government about the negative impacts of the proposed tariff regime, but it does not listen to us. “There is not a single wine company in the UK that supports this new approach.”

Other big names calling for a U-turn include Majestic Wine, Laithwaites and Cambridge Wine Merchants.

Tamara Roberts, chief executive of Ridgeview Wine Estate, a winery in East Sussex, said: “It is overly complicated and will lack clarity for both consumers and producers.”

Chancellor Rachel Reeves has also not ruled out raising taxes on alcohol, but that an increase would be “truly punishing”, according to Pepper Sells, boss of wine gift company Divine.

A Treasury spokesman said: “We do not comment on speculation about tax changes outside of tax events.”