Cambridge Wine's Hal Wilson leads the way and gets local MP to back Drop the Duty campaign

By Richard Siddle

Published: 26 January, 2015

Leading independent wine merchant, Hal Wilson of Cambridge Wine Merchants, has shown the way forward by persuading his local MP to stand up for a drop in wine and spirits duty in March's Budget by writing to Chancellor, George Osborne calling for a change.

Cambridge's MP Julien Huppert Liberal Democrat Cambridge's MP Julien Huppert Liberal DemocratHuppert has taken up Cambridge Wine Merchant's Hal Wilson request to write to Chancellor George Osborne calling for a 2% cut in alcohol duty in 2015 Budget

Wilson's move is part of a wider industry campaign, organised by the Wine & Spirit Trade Association and Scotch Whisky Association, to get members of the trade to get their local MP to call on the Chancellor to introduce a 2% drop in duty in his last Budget before the General Election.

Harpers hopes to play its part by urging readers to follow suit and, in particular, ask independent wine merchants across the country to back up Wilson's action, and write to their MP calling for a drop in duty as a key action in our March for the Independents campaign that officially starts next week.

Wilson has been in close contact with his local Cambridge MP, Liberal Democrat, Julian Huppert, who has written on two separate occasions to George Osborne to support Wilson on key trading issues.

In December he asked Osborne to take up Wilson's request for the government to look at easing the tax and duty burden on wine retailers looking to import wine from the UK who are burdened by "the timing of the payment of duty on imported wines and the size of the guarantee required for duty deferment".

This stressed Huppert puts UK small businesses at a "competitive disadvantage" to elsewhere in the EU.

Last week Huppert went a step further calling for Osborne to cut all alcohol duty in the 2015 Budget.

Hal Wilson

In his letter he wrote: "The Government's decision to cut beer duty was an enormous success. It lowered prices for consumers and helped businesses flourish in an otherwise challenging economic environment. I agree with my constituent that there is a very strong case for extending cuts to duty for spirits and wine."

He added: "My constituent is asking that the government introduce a 2% cut in the duty of all alcohol. My constituent does a very good job in outlining all of the economic benefits we could expect - in terms of increased consumption, job creation, and also how it would help public finances. I would be grateful if you could consider his request."

In his initial letter supporting Wilson's calls for a change in duty deferement legislation. He sets out the issue in some detail to the Chancellor: "As you are no doubt aware, EU law requires that the duty on imported goods to any destination Member State be guaranteed in that country before the goods are dispatched to it. Importers can either use the Registered Consignee Scheme, which requires a guarantee twice the monthly duty deferment limit granted, or employ the services of a third party excise warehouse, both of which are painfully expensive for small businesses such as Mr Wilson's.

He added: "Mr Wilson points out that given that the level of UK excise is significantly higher than that levied in other Member States, UK wine importers face notably higher costs (in terms of duty deferment guarantees) than their European counterparts. To employ Mr Wilson's example, a guarantee for a Belgian SME will be a sixth of that for a UK SME, rendering UK businesses uncompetitive in many cases.

"Mr Wilson suggests that a scheme could be employed whereby guarantees under the Registered Consignee Scheme are scaled in line with the relative excise levels set by Member States. This could level the playing field somewhat and prevent UK importers from being further disadvantaged by the already high levels of excise they have to pay.

"I would be very interested to hear your response to Mr Wilson's proposal, as well as any further information on actions the government is taking to ease the burden on small importers such as Cambridge Wine Merchants."

Hal Wilson Hal Wilson

Huppert has taken up Cambridge Wine Merchant's Hal Wilson request to write to Chancellor George Osborne calling for a 2% cut in alcohol duty in 2015 Budget

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