12 March 2008

The Wine & Spirit Trade Association (WSTA) says consumers are set to suffer after today's inflation busting rise in the rates of duty on wine and spirits.

The Chancellor's considerable tax hike (14 pence on the price of a bottle of wine and 55 pence on a bottle of spirits) means people in Britain now pay more tax on wine than in any other European Union country.

WSTA Chief Executive Jeremy Beadles said: "It is no cause for celebration that British consumers will now pay more tax on wine than anyone else in the European Union.

"It is bizarre at a time when the economy is slowing, prices are rising and many families are feeling the pinch that the Government should choose to add to their burden by making the simple pleasure of a glass of wine or spirits considerably more expensive.

"We are surprised that a Government which came to power promising to govern in the interests of the many now wishes to punish them. Our polling shows voters don't support this."

"Wine and spirit drinkers already face the prospect of price rises as a result of the increasing cost of raw materials - grapes, grain, packaging, glass, freight and energy. This tax hike will simply make things worse for the average consumer."

"That the Government should commit itself and future Governments to an above inflation rate increase for alcohol for the next four years is hitting all drinkers for the sins of a minority even before it has received the results of its own report on Pricing, Promotions and Harm. A policy of commit now, hurt consumers now, study the issue later."

ENDS

Notes for Editors

1. In his first Budget Statement, the Chancellor Alistair Darling MP announced:

- A duty increase of 14 pence per bottle of wine

- A duty increase of 18 pence per bottle of sparkling wine

- A duty increase of 55 pence per bottle of spirits

- A duty increase of 4 pence per pint of beer

- A duty increase of 3 pence per litre of cider

- A duty increase of 20p per bottle of fortified wine

2. These changes will come into effect from midnight on Sunday 16 March 2008.

3. Polling carried out for the WSTA by ICM in January 2008 found that 65% of consumers do not think that higher taxes will solve the problems associated with problem drinking and in a range of options the Government could take to tackle problem drinking, raising taxes is seen as least effective.

4. The UK now has the highest level of wine duty in the European Union.

5. The UK has the fourth highest rate of spirit duty in the European Union, behind Ireland, Sweden and Finland, and more than double the £2.76 the French consumer pays.

6. The WSTA will produce a detailed report on the Budget and how it will affect members. This will be made available on our website: www.wsta.co.uk

7. The Wine and Spirit Trade Association (WSTA) is the only UK organisation representing the whole of the wine and imported spirit supply chain including producers, importers, wholesalers, bottlers, warehouse keepers, logistics companies, brand owners, licensed retailers and consultants. The WSTA has 321 member companies.

8. For more information please contact:

Gavin Partington 020 7089 3876