The price of a bottle of wine ‘will rise by 45p in Jeremy Hunt’s Budget’: Chancellor ‘is preparing biggest wine tax raid in more than 50 years despite cost of living crisis’
- Chancellor set to announce alcohol duties will increase in line with inflation
- A new system for taxing alcohol based on strength is also due to come into force
The price of a bottle of wine will rise 45p in Jeremy Hunt’s budget – as he prepares for the biggest wine tax raid in more than 50 years.
The Chancellor is set to announce that alcohol duties will increase in line with inflation from August 1 in his Spring Budget on Wednesday.
A new system for taxing alcohol is also due to come into force, with around 90 per cent of still wines to see an rise in the amount they are taxed, The Telegraph reports.
It comes amid fears that pub landlords, brewers and distillers will be left with no choice to pass on the cost via higher prices, despite consumers already battling the cost of living crisis.
The Wine and Spirit Trade Association says the alcohol duty increase for wine will be the biggest for more than 50 years.
The Chancellor is set to announce that alcohol duties will increase in line with inflation from August 1
A new system for taxing alcohol is also due to come into force, with around 90 per cent of still wines to see an rise in the amount they are taxec
A battle is likely to ensue between ministers arguing the industry has received significant Government support through the pandemic and trade figures conversely saying that alcohol is already considerably taxed and customers are already feeling the pinch.
Alcohol duty is expected to increase by at least 10 per cent, but there are fears the figure could been even higher with Mr Hunt understood to be using the Retail Prices Index inflation – measured at 13.4 per cent in January.
The Government’s new look alcohol duty system will also see drinks measured on alcoholic strength, with stronger drinks taxed more.
It means wine will be hit by both the increase in duty and also the impact of the new system due to its strength.
WTSA analysis has found the average bottle of still wine will be taxed around 44p more when the changed come into force from August.
Chancellor Jeremy Hunt is seen jogging near Downing Street on Monday as he prepares for his Spring Budget
The research also found that it will be the largest jump in duty on wince since rates were first standardised more than 50 years ago.
Bottles of port will see a tax rise of £1.29 and sherry of 97p.
Miles Beale, chief executive of the WSTA, issued a plea, saying: ‘We are calling on the Chancellor to extend the freeze on alcohol duty to avoid pushing up prices for consumers, who are facing the worst cost of living crisis in decades.
‘History has shown that freezing alcohol duty delivers increased revenue to the Exchequer.
‘If duty rates went up by RPI, this would have been a crippling blow to the UK alcohol industry and consumers who would have to pay the price for tax rises.’
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