WSTA urges Treasury to resist further tax rises on alcohol

16th February 2010, 11:31am

The Wine and Spirit Trade Association (WSTA) is urging the Treasury to resist further tax rises on alcohol in this year's Budget, warning that high levels of tax on wine and spirits in the UK are undermining recovery in the drinks sector.

In its Budget submission, the WSTA says the scale of tax increases on alcohol over the last 2 years – over 20% for wine and 15% for spirits – has contributed to widespread job losses in the drinks industry.

The tax escalator threatens to deliver another 5% tax increase on alcohol in the coming weeks. There are fears the Chancellor may raise excise duties further to plug the hole in public finances despite evidence that higher taxes are failing to match revenue forecasts.

WSTA chief executive Jeremy Beadles today urged Exchequer Secretary Sarah McCarthy-Fry to postpone the tax escalator, given the fragile state of the industry and the wider economy.

He said: "While other industries have had a helping hand over the last couple of years we and the millions of consumers who enjoy our products have been hit again and again by tax increases.

"Enough is enough. We know the public finances are in difficulty but pushing up prices with higher taxes does nothing to help British consumers or businesses battling to recover from the recession."

Related Articles:

• 28 Oct 2009 - WSTA signs agreement with cider makers
• 01 Sep 2009 - WSTA conference tackles changing drinks market
• 18 Aug 2009 - WSTA to host low alcohol wine forum
• 13 Aug 2009 - WSTA warns mandatory code is not the solution
• 13 Mar 2009 - Consumers continue to cut wine spending
• 10 Mar 2009 - WSTA Procurement auctions deliver big cost savings

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Wilson Anderson

17 February 2010 at 7:29pm

The goverment could still increase the duty on alcohol and keep the publicans happy. Just levy it on the off trade only as it is they who are selling the cheap drink that we as licensees cannot compete with. Maybe then people will start coming back to the pub instead of drinking at home. it is wrong that we have to police the public who clearly start there drinking at home and maybe have that one drink in your establishment that tips them over the edge.Tax the Supermarkets!!!!

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