Wine Retailers Call on Government to Cancel Planned Alcohol Duty Increase

The retailers are calling for the reform of the alcohol duty system before it’s too late, as they fear it could significantly harm businesses and consumer choice.

The planned reforms, announced in 2023 under the previous government, are set to increase the number of tax bands for wine from one to 30. Retailers argue that this will make the system more complex and costly. Additionally, the new system will introduce a 2p rise in duty for every 0.1% increase in alcohol strength, which could lead to higher prices for consumers.

Courtesy of Cambridge Wine

Majestic Wine and Cambridge Wine Merchants have already reached out to their customers, encouraging them to contact their MPs in protest of the changes. The retailers have warned that the new duty system could reduce the quality and availability of wines, as producers may choose to stop exporting to the UK due to the added administrative burden.

Majestic’s chief executive, John Colley, expressed concern that the removal of the alcohol duty freeze—extended in the Chancellor’s Spring Budget until February 2025—would harm small businesses, including the UK’s 900 independent wine merchants and overseas importers. Colley emphasized that these changes could not only restrict business growth but also threaten livelihoods at a time when support for high street businesses is crucial.