The Wine and Spirit Trade Association (WSTA) has announced that the inflation rate for the sector is now three times higher than it was this time last year and that the duty hikes for wine and spirits that took effect in August of last year have contributed to the unexpected increase in UK inflation in December.
The ONS reported that the overall inflation rate in the United Kingdom increased in December to 4.9% from 3.9%, marking the first increase since February. Inflation for wines and spirits has increased significantly. At this time last year it was 3.5%, and six months after the government approved its heavily criticised reforms to “simplify” UK alcohol duty, it stands at 9.6%. Inflation for spirits now sits at 8.9%, wine 7.8% and fortified wine 18.7%.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association has now launched a campaign to convince the government that the industry is in a “last chance saloon” and to curb the new alcohol duty system in the spring budget.
He said, “We told the government its plans for the duty system would push up inflation. If the government is serious about taking measures to cut inflation the simple answer is to cut alcohol excise duty at the next Budget and stop the duty system reforms where they are now.”
In a call to members to take action he says, “It is crucial we persuade Government that keeping duty down is “win, win” as we continue to navigate the cost-of-living crisis and additional pressures facing British Businesses.”
”We are asking not just all WSTA members, but all UK wine and spirit businesses, to join our campaign to keep excise duty down and to persuade Government to maintain the wine easement.”
He adds, “Although duty remains frozen until August, the Spring Budget is when we expect the Treasury to decide the next duty rate. If it were to rise again – just 12 months year after the largest rise in nearly 50 years – the industry’s pips will be squeaking!”
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