Duty to more than double by 2017, says Wilson Drinks Report

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Duty on wine will more than double over the next five years, due to the HM Treasury expecting the increase in economic growth to be matched by a rise in the sales of wine, according to the Wilson Drinks Report.

 

Tim Wilson, managing director of WDR, said the Chancellor's Autumn Statement was accompanied by updated forecasts of the UK economy by an independent report from the Office for Budget Responsibility, which forecasts increases in total duty receipts to rise significantly.

 

The OBR predicts between 2011/12 and 2016/17 beer and cider duty will rise by 8%, wines by 52% and spirits by 29%.

 


WDR identified back in March 2012 that receipts on beer, wines and spirits would all signficantly increase over the next few years, despite an overall reduction in the total amount of alcohol being consumed in the UK.

 

Wilson said: "We expect that the Chancellor will continue to implement the duty escalator on alcohol over the remainder of this parliament. The level of increase in the predicted total duty receipts is proof of this. Despite volumes of still wine being in decline at the moment, wine duty receipts are expected to increase by 52% between 2011/12 and 2016/17. This is because HM Treasury expect the gradual increase in economic growth to be accompanied by large increases in the sales of wine."

 


He added: "We have been saying for some time that the Chancellor will prioritise duty freezes on petrol over freezes on alcohol duty – today's announcement that the 3p planned increase in fuel duty has been cancelled demonstrates that any spare cash will be used to help car drivers not drinkers."

 

The Wilson Drinks Report is a research-based quarterly business report focused on the key issues in the world of UK drinks.

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