UK alcohol duty freeze

Great news for wine and spirit businesses across the UK! The recent decision to freeze alcohol duty is a welcome relief, especially for those who have passionately voiced their concerns against a second rise in just four months. Stephen Russell, distiller and spokesperson for the UK Spirits Alliance, representing 280 spirits businesses, couldn't be more grateful as we enter the festive season. "A heartfelt thank you to the chancellor for freezing duty. We raise a toast to his decision and appreciate him for listening to the voices of distillers, landlords, and bar owners throughout the UK."

Today's freeze is not just a nod to the industry; it's a catalyst for growth, job support, and a helping hand to consumers facing tight budgets. As household expenses continue to mount, this decision is a positive step forward. Earlier this month, the Wine and Spirit Trade Association (WSTA) highlighted that a duty freeze was the only viable option to prevent further price hikes for consumers already feeling the pinch. Had the chancellor opted for an increase in duty by the current 8.9% RPI, coupled with the August increases, we would have seen cumulative excise duty spikes of 68p on a bottle of wine, £1.50 on a bottle of spirits, and £1.67 on a bottle of port. In addition to this relief, the small business multiplier for SMEs has been extended for another year, and the introduction of the new living wage of £11.44 aims to "eliminate low pay."

Miles Beale, the CEO of WSTA, expresses immense relief, stating, "This freeze comes as a huge relief to a sector that has taken a battering. We implore the chancellor and his team to lock in the freeze until at least the end of this Parliament."

Ed Baker, MD of Kingsland Drinks, echoes this sentiment, relieved that the chancellor has chosen not to burden the UK wine and spirits sector with another excise increase.

Simon Doyle, general manager at Concha y Toro Europe, acknowledges the wine industry's efforts to manage cost increases and keep prices reasonable. He expresses gratitude that the chancellor has decided against further duty increases, applauding the WSTA for representing the industry's challenges to the Treasury.

Recent data from the Office for National Statistics (ONS) indicates the average price of a bottle of red wine is £7.72, with vodka at £16.80 (up 14%) and gin at £17 (up 10%) compared to last year. Fortified wine sees an increase of 17%, with an average price of £11.53.

While these figures reflect average prices in September 2023, they do not include the full impact of the August duty rises, as not all stock sold during that period incorporated the new duty rates.

Thanks to the chancellor's decision, a second duty rise has been averted, preventing the average price of a bottle of red wine from surpassing £8 and keeping the average price of gin or vodka below £18. Cheers to a positive turn for the industry!