***From The Telegraph’s Political Editor Ben Riley-Smith:***
The price of a bottle of wine is expected to rise by around 45p thanks to an alcohol tax raid to be announced in Wednesday’s Budget.
Jeremy Hunt, the Chancellor, is set to confirm alcohol duties will rise with inflation from Aug 1 despite cost of living pressures, The Telegraph understands.
At the same time, a new system for taxing alcohol will come into effect – with stronger drinks having higher duties.
As a result of the measures, around 90 per cent of all still wines will be hit with a tax increase this summer, according to industry estimates – with the rises likely to be passed on to consumers in higher prices.
It will be the biggest duty increase for wine in more than 50 years, according to the Wine and Spirit Trade Association.
Treasury ministers will likely argue that the industry has received large amounts of government support in the last three years since the Covid-19 pandemic struck.
However, industry figures are expected to speak out against the rise, arguing that many alcoholic drinks are heavily taxed and drinkers are already facing a squeeze.
The duty increase for all alcoholic drinks is expected to be at least 10 per cent and could be higher, with the Treasury due to use a recent figure from the Retail Price Index (RPI) for inflation.
But a second change will also come into effect at the same time, with the Government’s long-awaited shake-up of alcohol duties also kicking in this August.
The new system is based on alcoholic strength, with stronger drinks getting taxed more and weaker drinks being taxed less.
Some drinks – such as wine – are set to get a double whammy, being taxed more first because of the duty rise and then because of the impact of the new system.
A bottle of still wine will be taxed around 44p more from August, according to analysis by the Wine and Spirit Trade Association.
Analysts for the trade body believe that is the biggest increase in duty on wine since rates were standardised in 1971. It would be double the last biggest rise of 22p a bottle in 1975.
A bottle of port will be taxed £1.29 more and a bottle of sherry will be taxed 97p more, according to the analysis, which is based on the Treasury using a 10 per cent figure for inflation.
However, the tax on some alcoholic drinks will drop under the new system, even with duties rising with inflation.
Cans of gin and tonic will drop by 5p, according to the industry analysis. The tax owed on sparkling wines will also fall, thanks to Treasury support previously announced.
Miles Beale, chief executive of the Wine and Spirit Trade Association, issued a last-minute plea, saying: “We are calling on the Chancellor to extend the freeze on alcohol duty to avoid pushing up prices for consumers, who are facing the worst cost of living crisis in decades.
“History has shown that freezing alcohol duty delivers increased revenue to the Exchequer. If duty rates went up by RPI, this would have been a crippling blow to the UK alcohol industry and consumers who would have to pay the price for tax rises.”
However I will say we need to tax major breweries a lot more and reduce the tax on independent breweries. Encourage pubs to have cheap, independent beers on tap to get more people through the door once more.
Life is stressful
Drink alcohol
Inflation
Get stressed
Drink alcohol
Alcohol costs even more
Drink more
Tax on alcohol
GET EVEN MORE STRESSED
DRINK EVEN MORE FROM STRESS
Die early because you intentionally gave yourself liver failure
They should also roll the sugar tax out to alcoholic drinks. In many cases people are drinking a huge amount of calories each week without realising it.
I feel like people in the UK would suck the alcohol out of a drunk’s head wound if it got too much to buy drink, rather than just give it up.
Note how taxes are being adjusted for inflation but tax thresholds are not.
Okay? I have no problem with stupid levels of tax on alcohol or tobacco etc. They’re not life essentials, better raising tax there than on stuff people actually need.
“Treasury ministers will likely argue that the industry has received large amounts of government support in the last three years since the Covid-19 pandemic struck.”
You mean like when Boris was telling people not to go to the pub, but equally wouldnt close them by law so pubs couldnt claim on their insurance for lost revenue?
That kind of help?
Good.
Despite how much it’s engrained into our culture, alcohol is terrible for society as a whole so it should be taxed far more harshly than other consumables.
Not nearly enough in my opinion, alcohol should be taxed aggressively.
When the conservatives tax me I don’t mind. But if it was Labour, well you wouldn’t hear the last of it. I’m Brainwashed and brain dead you see.
It’s a scheduled rise due to inflation… hardly a “raid” and there’s been rumours he’s going to cancel it. Probably just the Telegraph making a big deal of it so he looks better after the budget is announced/ strong arming him into actually cancelling it
If I remember rightly this is a bit of a slap in the face for poorer people as the tax hike represents a much larger proportion if the bottle of whatever if you’re spending 6 quid than if you’re spending 21 quid per bottle.
I think Naked Wines and other companies trade on that fact (spend more on wine as the cheapest ones are like 90% taxes and therefore only after about 8 quid will the money you put in go towards the value of the wine)
This is on top of the fact obviously poorer people have less disposible income.
Anyway either way I’d be interested to see whether higher taxation causes lower drinking rates among those who can’t really afford it. I genuinely don’t know the answer to this btw not being facetious.
Im a teetotaller, and I totally support increasing tax on alcohol.
Before I get accused on wanting to just tax others, I eat junk food too but I also support creating a sugar tax on food, not just drinks.
Taxes to incentivize healthy lifestyles are a good thing IMHO, just like taxes on cigarettes are a good thing.
And this tax is not regressive either – just dont drink alcohol. Its not like a tax on carrots and veg.
14 comments
***From The Telegraph’s Political Editor Ben Riley-Smith:***
The price of a bottle of wine is expected to rise by around 45p thanks to an alcohol tax raid to be announced in Wednesday’s Budget.
Jeremy Hunt, the Chancellor, is set to confirm alcohol duties will rise with inflation from Aug 1 despite cost of living pressures, The Telegraph understands.
At the same time, a new system for taxing alcohol will come into effect – with stronger drinks having higher duties.
As a result of the measures, around 90 per cent of all still wines will be hit with a tax increase this summer, according to industry estimates – with the rises likely to be passed on to consumers in higher prices.
It will be the biggest duty increase for wine in more than 50 years, according to the Wine and Spirit Trade Association.
Treasury ministers will likely argue that the industry has received large amounts of government support in the last three years since the Covid-19 pandemic struck.
However, industry figures are expected to speak out against the rise, arguing that many alcoholic drinks are heavily taxed and drinkers are already facing a squeeze.
The duty increase for all alcoholic drinks is expected to be at least 10 per cent and could be higher, with the Treasury due to use a recent figure from the Retail Price Index (RPI) for inflation.
But a second change will also come into effect at the same time, with the Government’s long-awaited shake-up of alcohol duties also kicking in this August.
The new system is based on alcoholic strength, with stronger drinks getting taxed more and weaker drinks being taxed less.
Some drinks – such as wine – are set to get a double whammy, being taxed more first because of the duty rise and then because of the impact of the new system.
A bottle of still wine will be taxed around 44p more from August, according to analysis by the Wine and Spirit Trade Association.
Analysts for the trade body believe that is the biggest increase in duty on wine since rates were standardised in 1971. It would be double the last biggest rise of 22p a bottle in 1975.
A bottle of port will be taxed £1.29 more and a bottle of sherry will be taxed 97p more, according to the analysis, which is based on the Treasury using a 10 per cent figure for inflation.
However, the tax on some alcoholic drinks will drop under the new system, even with duties rising with inflation.
Cans of gin and tonic will drop by 5p, according to the industry analysis. The tax owed on sparkling wines will also fall, thanks to Treasury support previously announced.
Miles Beale, chief executive of the Wine and Spirit Trade Association, issued a last-minute plea, saying: “We are calling on the Chancellor to extend the freeze on alcohol duty to avoid pushing up prices for consumers, who are facing the worst cost of living crisis in decades.
“History has shown that freezing alcohol duty delivers increased revenue to the Exchequer. If duty rates went up by RPI, this would have been a crippling blow to the UK alcohol industry and consumers who would have to pay the price for tax rises.”
**Read more: https://www.telegraph.co.uk/politics/2023/03/13/sour-grapes-bottle-wine-cost-45p-alcohol-tax-raid/**
Meh. Seems like an overall moot issue.
However I will say we need to tax major breweries a lot more and reduce the tax on independent breweries. Encourage pubs to have cheap, independent beers on tap to get more people through the door once more.
Life is stressful
Drink alcohol
Inflation
Get stressed
Drink alcohol
Alcohol costs even more
Drink more
Tax on alcohol
GET EVEN MORE STRESSED
DRINK EVEN MORE FROM STRESS
Die early because you intentionally gave yourself liver failure
They should also roll the sugar tax out to alcoholic drinks. In many cases people are drinking a huge amount of calories each week without realising it.
I feel like people in the UK would suck the alcohol out of a drunk’s head wound if it got too much to buy drink, rather than just give it up.
Note how taxes are being adjusted for inflation but tax thresholds are not.
Okay? I have no problem with stupid levels of tax on alcohol or tobacco etc. They’re not life essentials, better raising tax there than on stuff people actually need.
“Treasury ministers will likely argue that the industry has received large amounts of government support in the last three years since the Covid-19 pandemic struck.”
You mean like when Boris was telling people not to go to the pub, but equally wouldnt close them by law so pubs couldnt claim on their insurance for lost revenue?
That kind of help?
Good.
Despite how much it’s engrained into our culture, alcohol is terrible for society as a whole so it should be taxed far more harshly than other consumables.
Not nearly enough in my opinion, alcohol should be taxed aggressively.
When the conservatives tax me I don’t mind. But if it was Labour, well you wouldn’t hear the last of it. I’m Brainwashed and brain dead you see.
It’s a scheduled rise due to inflation… hardly a “raid” and there’s been rumours he’s going to cancel it. Probably just the Telegraph making a big deal of it so he looks better after the budget is announced/ strong arming him into actually cancelling it
If I remember rightly this is a bit of a slap in the face for poorer people as the tax hike represents a much larger proportion if the bottle of whatever if you’re spending 6 quid than if you’re spending 21 quid per bottle.
I think Naked Wines and other companies trade on that fact (spend more on wine as the cheapest ones are like 90% taxes and therefore only after about 8 quid will the money you put in go towards the value of the wine)
This is on top of the fact obviously poorer people have less disposible income.
Anyway either way I’d be interested to see whether higher taxation causes lower drinking rates among those who can’t really afford it. I genuinely don’t know the answer to this btw not being facetious.
Im a teetotaller, and I totally support increasing tax on alcohol.
Before I get accused on wanting to just tax others, I eat junk food too but I also support creating a sugar tax on food, not just drinks.
Taxes to incentivize healthy lifestyles are a good thing IMHO, just like taxes on cigarettes are a good thing.
And this tax is not regressive either – just dont drink alcohol. Its not like a tax on carrots and veg.