Women hit hardest by UK drink duty hike

23rd April, 2013 by Andy Young

New analysis from the Wine and Spirit Trade Association (WSTA) has found that women will bear the financial brunt as the beer tax cut is wiped out by wine and spirit increases.

Two-women-drinking-wine-002The WSTA’s analysis claims that any financial benefits that pubs might have expected from the cut in beer duty will be lost. The WSTA said that if alcohol sales in the on trade “continue at a similar level to last year, pubs, clubs and bars will be paying almost £34 million extra tax in 2013/14 compared to 2012/13.”

Women can expect to be hardest hit by the price increases as the continued duty escalator on all other alcohol products, apart from beer, will see the tax burden across the entire trade increase by £292m.

WSTA chief executive Miles Beale said: “The Chancellor aimed to support pubs with a tax cut for beer in the Budget, but the fact is that his tax rises of over 5% on wines and spirits will wipe out the tax cut for beer and add another £34m to the tax bill for the on trade. We are concerned that women look set to be penalised by wine and spirit price increases across the board, simply because they make different choices about what to drink.”

The analysis claims that as a result of the price increases women will be paying out £65m more than men, around 61% of the total bill. Figures show that 63% of what women drink is wine, compared to 33% for men. Women also drink more spirits than men, 22% compared to 13%. In comparison, 51% of what men drink is lager or ale­ while this figure sits at 8% for women.

Mr Beale added: “With wine and spirits now accounting for 41% of the value of products sold in the on-trade, the only way the Chancellor can genuinely help pubs is to scrap the hated duty escalator for wine and spirits too.”

The WSTA adds that since the introduction of the duty escalator, by former chancellor Alistair Darling in 2008, wine duty has increased by 50% and spirits duty by 44% – adding an additional 67p to a bottle of wine and £2.38 to a 70cl bottle of vodka.

Last month the drinks business revealed the “Treasury smokescreen” from the cut in beer duty, as next year’s inflationary duty increase will see the chancellor recoup what he has “given away” in this year’s Budget.

One Response to “Women hit hardest by UK drink duty hike”

  1. frank meaker says:

    Bad news

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

New Business Development Manager Nordic

Concha Y Toro
Stockholm, Sweden

Experienced Administrator

The Drinks Business
Central London, UK

Sales Executive (London – Craft Spirits)

Bimber Distillery
London, UK

2 x Buying Assistants

Berry Bros. & Rudd
Battersea and Basingstoke, UK

Temporary Christmas Sales Support - Wines & Spirits

Harrods
Knighsbridge, London, UK

Head of Wholesale

Hispamerchants Ltd
London, UK

Sales Manager

Hispamerchants Ltd
London, UK

National Sales Manager

Maverick Drinks
Field based, UK

The World Bulk Wine Exhibition

Amsterdam,Netherlands
20th Nov 2017

The Drinks Business Green Awards 2017

London,United Kingdom
20th Nov 2017

The Global Spirits Masters Lunch

London,United Kingdom
1st Dec 2017
Click to view more

Green Awards 2017

Deadline : 25th October 2017

The Global Riesling Masters 2017

Deadline : 30th October 2017

Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more