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WSTA calls out Treasury minister on alcohol duty misinformation
In a powerful 11 minute video produced by the Wine and Spirit Trade Association (WSTA), the chief executive Miles Beale called out the Exchequer Secretary Gareth Davies’ speech in Parliament on the alcohol duty system.
In a detailed point-by-point 11 minute video, Beale systematically refuted each one of Davies’ points on the alcohol duty system.
He rebuffed some of the minister’s key claims, such as a “simplified” duty system, the public health benefits, and lifting the bureaucratic burden.
Beale said it is “misleading” to cite public health objectives because, if the new system was set-up with this in mind, as there wouldn’t be a huge disparity in duty across beverages with the same ABV.
Specifically, he mentions how cider in the 3.5-8.5% ABV tax band only pay half the duty of beer, and even less than half the duty on other products.
He said: “The government is using public health arguments as a thin veneer that maintains market distortions.”
Davies also said the duty system was meant to support fairness, jobs, tackle high strength products at the cheaper end of the price bracket, and also support the low- and no-alcohol sector.
But Beale commented that the system wasn’t fair as wine producers can’t change their ABV, so “it is not fair to wine producers at all”.
He also cited a letter signed by 120 businesses from the WSTA, which states that the system doesn’t support firms either.
Beale also highlighted how it didn’t tackle high strength products, which had actually had reduced tax at the top of the range.
Adding that it was clear the duty system was “never designed to support pubs”, or the wider on-trade, he pointed out that half of serves in hospitality are wine and spirits.
He said: “What we can’t understand is why the Tories have taxed wines and spirits more harshly than other categories since 2010.
“We though the principles of the system were to make it fairer, simpler, and less bureaucratic. Well, for wine, it does absolutely none of those.”
Beale goes on in the video to undertake a comprehensive takedown of Davies’ comments, detailing and refuting his claims about the impact of the bureaucracy, Brexit, labelling and red tape as well as information on the disproportionate impact of the duty system on the wine trade.
You can see the full video below.