The Chancellor has today confirmed that VAT will return to 17.5% on January 1st next year, having been reduced to 15% in December 2008.
The temporary reduction was accompanied by an increase in excise duty of 8% for wine and 4% for spirits, designed to ensure that the impact of the VAT change was broadly cost-neutral for alcohol.
The Chancellor confirmed today that these excise duty increases will remain in place despite widespread calls for them to be rescinded once VAT returns to 17.5%.
Responding to today’s statement Jeremy Beadles, Chief Executive of the WSTA, said:
“Today’s confirmation that these tax increases will remain in place is disappointing for the trade and the millions of British consumers they serve, though sadly it is not surprising given the state of public finances.”
“This means that since last year’s Budget excise duty has gone up by around 20% for wine and 16% for spirits – excessive increases at a time when most families are feeling the pinch.”
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Notes to Editors:
The WSTA is the UK lobbying organisation for the wine and spirit industry representing over 320 companies producing, importing, transporting and selling wines and spirits.
We campaign to promote the industry’s interests with governments at home and abroad.
We work with our members to promote the responsible production, marketing and sale of alcohol.
For more information please contact Gavin Partington:
Tel: +44 (0) 20 7089 3876
Mob: +44 (0) 7966 014058
Email:
WSTA condemns Scottish Government over alcohol plans
The WSTA accused the Scottish Government of punishing Scottish consumers and businesses with its Alcohol Bill published today, whilst doing little to tackle the root causes of alcohol misuse.
The Bill aims to give Ministers sweeping powers to impose minimum pricing, though it doesn’t set a minimum price.
It seeks to ban all alcohol promotions in shops – a move which would outlaw mainstream discounts such as 3 for 2 wine deals.
It also proposes a new tax on local business with plans for a so-called social responsibility levy on alcohol retailers, yet doesn’t set a level or explain how it might work.
In summary the Scottish Government’s Alcohol Bill:
• Would give the Scottish Government power to set and raise a minimum price for alcohol but fails to set a price a minimum price
• Bans promotions and punishes customers who seek good value, branding hard pressed shoppers who stock up with 3 for 2 wine deals as irresponsible.
• Ignores the view of the Scottish Parliament by proceeding with plans to allow under 21’s to be banned from buying alcohol in shops
• Imposes a new tax on local businesses with plans for a social responsibility levy, but again no detail on how it will work
Jeremy Beadles, Chief Executive of the WSTA, said:
“The stance by Opposition parties against minimum pricing is to be welcomed but this legislation contains other measures which are equally unwelcome and equally unlikely to address the root causes of alcohol misuse.
“Despite the fact that the Government’s own figures show overall alcohol consumption in Scotland is falling, Ministers seem determined to pursue proposals which will hit innocent Scottish consumers and businesses.
“Scotland deserves better than a piece of legislation which fails to focus on the real issue.
“We wish to work with the Scottish Government and other stakeholders to develop policies that address the problem of alcohol misuse, including rigorous enforcement of existing legislation, systematic education in schools and widespread introduction of Community Alcohol Partnerships proven to deliver results.”
Ends
Notes to Editors:
The WSTA is the UK lobbying organisation for the wine and spirit industry representing over 320 companies producing, importing, transporting and selling wines and spirits.
We campaign to promote the industry’s interests with governments at home and abroad.
We work with our members to promote the responsible production, marketing and sale of alcohol.
For more information please contact Gavin Partington:
Tel: +44 (0) 20 7089 3876
Mob: +44 (0) 7966 014058
Email:
Working Together to Reduce Harmful Drinking
The International Center for Alcohol Policies (www.icap.org) launches Working Together to Reduce Harmful Drinking as a contribution to the World Health Organization's (WHO) global strategy to reduce the harmful use of alcohol, as well as to the work of regional organizations and national governments involved in alcohol policy development and implementation. The book makes the case that beverage alcohol producers are legitimate stakeholders in government and public health initiatives to reduce harmful drinking; that it is essential to engage and integrate them continuously in the process of strategy development and its implementation; and that, with producers’ support and involvement, efforts to reduce alcohol-related harm will have a much higher chance of success. The book explores areas where alcohol producers' technical competence can make a positive contribution to reducing harmful drinking and where industry input has been welcomed by WHO. ICAP President Marcus Grant states, “Good intentions on the part of the industry are insufficient... We hope the book will stimulate even greater enthusiasm for the private and public sectors to work together to reduce harmful drinking and to measure the effectiveness of their efforts.”
To answer the critics who seek to sideline alcohol producers in the international debate, the book demonstrates that the alcohol industry is positively contributing to global policy discussions. The book’s answer to critics is, “Industry should be involved if industry has something to contribute, just as any other stakeholder in the alcohol field.” Marcus Grant makes the frank assertion: “Alcohol producers are under no illusion that they are the most important players in developing and implementing balanced alcohol policies. Governments, health professionals, and civil society must occupy centre stage. But, equally, alcohol producers are convinced that they do have a role to play. This book aims to demonstrate just how positive that role can be.”
The book covers all the areas where the alcohol industry has experience: producing beer, wine, and spirits; addressing availability of noncommercial drinks; pricing, marketing, and selling beverage alcohol; encouraging responsible consumer choice; and working with others to reduce problems. Working Together to Reduce Harmful Drinking concludes with a menu of 10 areas for specific actions that producers have put to the WHO and are willing and able to take, where permitted and appropriate, in countries around the world. Some are extensions of action that they are already taking; others are new proposals, offered in the spirit of breaking down traditional divisions between the private and public sectors. All are based on the experience, competence, and resources of the industry.
The messages recurring throughout the book are that reasonable regulation provides the context for good alcohol policy, excessive regulation often leads to unintended negative consequences, leading producers have a proud record of making positive contributions to implementing effective alcohol policies—but there are opportunities to do much more. The book acknowledges that very few strategies for reducing harmful drinking are universally applicable, and that, realistically, a range of options is required so that different countries and communities can select what combination of measures is likely to work best for them given their drinking culture and health priorities.
At the launch event, Paul Walsh, CEO, Diageo, underscored the importance of working together: “It is the only effective way to go to reduce harmful drinking—involving everybody who has something to bring to the table, including governments, law enforcement, public health organizations, experts in social and psychological behaviours, communities, and the whole supply chain involved from crop to cup.”
Graham Mackay, CEO, SABMiller, also spoke at the launch event, making the case that,
“Society will not fully address alcohol abuse without the collective involvement of the alcohol industry. We offer an intimate understanding of local markets, an ability to respond swiftly to issues, and the resources to bring stakeholders together. Working Together to Reduce Harmful Drinking sets out 10 practical and realistic solutions that, in our experience, are both effective and meaningful.”
The authors of Working Together to Reduce Harmful Drinking are experts in their respective fields with experience of working in industry, government, and academia. The book is directed toward a broad readership and will be of interest to: policy-makers involved in healthcare but also finance, agriculture, justice, tourism, and culture; public health and social policy specialists; health advocates; and beverage alcohol industry members, including those in the supply chain from farming to advertising, hospitality sectors, and retail.
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Note to the editor: The International Center for Alcohol Policies (ICAP, www.icap.org) is a not-for-profit organization supported by some of the major international producers of beverage alcohol. Set up in 1995, ICAP’s mission is to promote the understanding of the role of alcohol in society and to help reduce the abuse of alcohol worldwide. It works to foster dialogue and partnerships involving governments, the public health community, the beverage alcohol industry, civil society, and others interested in alcohol policy. ICAP’s work in the alcohol policy field is shaped by its commitment to pragmatic and feasible solutions to reducing harm that can be tailored to local and cultural considerations and needs.
Visit www.icap.org for full press kit, including the book’s synopsis, editor and author biographies, a discussion of ten areas for producers’ contributions (Chapter 9), and media backgrounders on advertising bans, pricing, industry role in policy discussions, and noncommercial alcohol.