The wine and spirits industry is the toast of the treasury after bringing a boost to British economy

Wine reaches a milestone for the first time hitting the £4bn mark in duty revenues for the Exchequer

In the last 6 months since a freeze in duty spirits have shot up £54m on last year.

The UK wine and spirits industry has brought a boost to treasury coffers, latest published accounts reveal.

Following this September’s takings the 12 month rolling total saw wine duty bringing in a milestone £4.037bn for the first time to the Exchequer.

Spirits also brought a welcome windfall to the Chancellor, hitting £1.48bn for the 6 months to September 2016, up £54m on the same period last year.

In 2015 wine and spirits contributed £15.5bn to the Treasury, enough to fund the cabinet office 6 times over or 4 DEFRAs.

Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said: 

"Evidence shows that freezing or cuts to duty are not only popular, but have led to greater revenue for the Exchequer, more jobs, greater investment by the industry and a better deal for consumers. The industry’s size and contribution to economic activity is regularly vastly underestimated. 

“Through distilleries, vineyards, bottling plants, logistic companies, wholesalers, distributers and retailers it supports nearly 600,000 jobs in the UK, contributes £45.5bn in economic activity and pays over £15.5bn in duty, VAT, corporation and employment taxes.

“The industry has faced difficult trading conditions recently with the fall of the pound and the uncertainty of trade post-Brexit.  Now more than ever the industry asks for government's support to allow the wine and spirit industry to invest, grow exports and create more jobs. And these figures show that reducing the wine and spirit industry’s high duty burden is an effective way to do that.” 

55% of the average bottle of wine in shops and supermarkets is accounted for by tax.

74% of a bottle of spirits in shops and supermarkets is accounted for by tax.

Following the freeze in wine duty in the 2015 budget, wine duty income increased on the previous year by £139m (+3.6%) from April 2015 – March 2016 inclusive.

Following the cut in spirits duty in the 2015 budget, spirits duty income increased on the previous year by £125m (+4.1%) from April 2015 to March 2016 inclusive.

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