Victory as UK alcohol super tax is scrapped

19th March, 2014 by Lauren Eads

Campaigners are toasting the success of a hard-fought campaign  after it was announced that the “unfair” alcohol duty escalator on wines and spirits is to be scrapped and duty on all spirits frozen.

Miles Beale

Miles Beale

Earlier this month dozens of MPs and representatives from the wine and spirits sector gathered to see the launch of ‘Call Time on Duty’ – a campaign spearheaded by The Wine and Spirit Trade Association (WSTA), Taxpayer’s Alliance and Scotch Whisky Association to end the alcohol duty escalator (ADE).

Since it was introduced in 2008, tax on wine has increased by 50% and by 44% on spirits which campaigners argued was costing the industry “vital jobs and unfairly hitting consumers in the pocket”.

Today their efforts were rewarded as Chancellor George Osborne announced he would be scrapping the ADE in this year’s Budget, announced today.

Miles Beale, chief executive of the WSTA, said: “It is great news that our Call Time on Duty campaign has been successful. This will be widely welcomed by consumers and businesses across the UK. The Chancellor’s decision to scrap the alcohol duty escalator a year early and freeze alcohol duty for spirits is fantastic news and will be widely welcomed by consumers and businesses.

“The move will help British pubs, bars, and restaurants up and down the country, and will boost jobs and investment in the great British drinks industry and in the hospitality sector more widely. While we would have liked to have seen a complete freeze on wine duty, the WSTA and our Call Time on Duty campaign partners applauds the Chancellor’s decision to scrap the escalator and will be raising a toast to George Osborne.”

David Frost, chief executive of the Scotch Whisky Association, said: “This show of support for distillers from the Coalition Government will be warmly welcomed across the Scotch whisky industry.

“We are delighted that the Chancellor and the Chief Secretary to the Treasury listened to our case for scrapping the unfair alcohol duty escalator and freezing whisky duty. It is a move that supports hard-pressed consumers, a major manufacturing and export industry and the wider hospitality sector.

“This fairer tax treatment in the UK, the third biggest market for Scotch whisky, also sends the right signal on excise policy to the governments of the 200 countries to which we export.  So its effects will be felt around the world.”

The decision to scrap the ADE follows the scrapping of the beer duty escalator in 2013.

Duty on beer was also cut by 1 pence per pint in this year’s budget. 

2 Responses to “Victory as UK alcohol super tax is scrapped”

  1. Nigel Blundell says:

    Miles, very well done to you and your team. This is extremely encouraging and a good result following your Call time on Duty campaign.

  2. catherine kneafsey says:

    I am a member of the public, considering the effects of Fetal alcohol syndrome on the life chances of babies. The reimposition of higher taxes on all alcohol would reduce excessive consumption of cheap alcohol. the vaunted ‘rights of consumers’ of your association is a cover up for the ‘right of the alcohol industry stakeholders and managers’ to make vast profits. The effect on employment across the nation if taxes were reinstated on alcohol would be minimal. The reduction on the extreme cost to the state of people whose lives are damaged by alcohol would be great. It is time society saw alcohol as equivalent to smoking in its threat to lives. I say that as a lover of wine.

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

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