UK wine retailers campaign against government’s alcohol duty increase.
- Major retailers fear increased tax bands will raise costs for businesses.
- Proposed changes include 2p duty rise for each 0.1% alcohol strength increase.
- Future availability of quality wines in the UK may be affected.
- Retailers urge public support to influence governmental decisions.
The looming alcohol duty hike proposed by the UK government has sparked a campaign from leading wine retailers, including Majestic Wine and Laithwaites, who are seeking to halt the impending changes. These retailers are particularly concerned about the adverse implications for their business operations if the scheduled reforms proceed.
A significant aspect of the proposed duty changes involves increasing the number of tax bands for wine from one to thirty. Retailers argue this will introduce unnecessary complexity and escalate costs, potentially passing the financial burden onto consumers. The system changes, set to begin in February, are feared to be a threat to both large-scale and small independent businesses.
In an effort to rally public support, businesses like Majestic Wine and Cambridge Wine Merchants have directly reached out to their customer base through emails, highlighting issues such as the risk of diminished wine quality and reduced availability due to administrative hurdles. The retailers warn that some wine producers might cease shipments to the UK as a result of these added bureaucratic challenges.
John Colley, CEO of Majestic Wine, voiced concerns over the economic impact, particularly on smaller businesses, stating that the termination of the duty freeze could hinder growth and jeopardise livelihoods. The focus, according to Colley, should be on bolstering economic resilience for local businesses rather than introducing potential setbacks at a crucial time.
Such efforts by retailers also reflect a broader appeal for government reconsideration, urging the public to voice their opinions by contacting their Members of Parliament. This grassroots approach seeks to influence policy and prevent what retailers view as a detrimental shift in duty regulations.
The campaign by UK wine retailers highlights their determination to mitigate potential adverse effects of the proposed alcohol duty changes on the industry.
