The impending rise in alcohol duty within the UK has prompted significant opposition from major wine retailers.
- Retailers like Majestic Wine and Cambridge Wine Merchants are actively lobbying against the duty hike.
- The increase will introduce 30 tax bands for wine, raising costs and complexity for retailers.
- Retailers warn that these changes could lead to a decrease in wine quality and variety available.
- There is a fear that the new system will negatively impact small businesses and threaten livelihoods.
The announcement of an upcoming increase in alcohol duty has triggered a wave of resistance among the UK’s largest wine retailers. Prominent figures in the industry, including Majestic Wine and Cambridge Wine Merchants, are spearheading efforts to halt the duty rise planned for February next year. They believe that the reform is essential before changes are enforced that could disrupt the sector significantly.
The new duty regime is set to introduce as many as 30 tax bands for wine, a substantial increase from the current single-band system. This development is perceived to elevate the costs and complexity of operations for wine retailers across the nation.
Campaigners have raised concerns that the new duty rates will see a 2p increase for every 0.1% rise in alcohol strength, consequently increasing overheads for retailers. This change could potentially affect the pricing of wine and the selection available to consumers.
Retailers, including Majestic and Cambridge Wine Merchants, have proactively reached out to their customers, urging them to advocate for the scrapping of the planned regulations by contacting their Members of Parliament. They stress the adverse effect on the variety and quality of wines available if the duty increase proceeds.
The chief executive of Majestic Wine, John Colley, has highlighted the potential detriment to small businesses, particularly the UK’s 900 independent wine merchants and overseas importers. He warns that the removal of the alcohol duty freeze could stifle growth and pose a threat to livelihoods at a crucial time for supporting local economies.
The proposed changes to the alcohol duty system present a formidable challenge to the wine retail sector, threatening to impact both industry operation and consumer experience negatively.
