Brexit
05Nov | 2018
WSTA launches #NoToNoDeal Campaign – ‘Don’t Bottle It’

On the back of the Prime Minister’s call to “listen to business”, the Wine...

Since the referendum, the WSTA has been working closely with Government to help mitigate the impact of Brexit and with the industry to help prepare businesses for all eventualities.

The UK acts as a hub for the world wine and spirit industry, and wine and spirits are the biggest food and drink export. Of wine consumed in the UK, 99% is imported – roughly half from the EU and half from third countries. For spirits, gin is the fastest growing food and drink export, reaching over £600 million last year and still with major potential to continue growing. This is why Brexit is such an important part of the WSTA’s agenda.

Furthermore, high inflation means that wine and spirit businesses have already had to deal with a painful 3.9% increase in duty in March 2017 at a time when the business environment was volatile, this volatility remains today.

As inflation remains high, so does the burden on businesses.The OBR forecasts that that wine and spirit businesses will have to pay an additional £1.2bn in alcohol duty per year by 2023, such a burden would significantly affect the industry and would restricts ambitions to invest and further innovate and also to fulfil export aspirations.

For more information on the WSTA Budget campaign, view our latest news stories below, and follow us across our social media channels – Twitter and LinkedIn.

Whilst the freeze in the November 2017 Budget was warmly welcomed across the supply chain and by consumers, pressures remains that mean the UK wine and spirit industry is unable to meet its full potential, held back by a punitive duty regime.

In 2017/18, UK wine and spirit businesses and consumers paid £7.7bn in duty, accounting for 67% of revenue collections despite accounting for less than a quarter of total alcohol clearances. Consumers now pay £2.23 per bottle of still wine and £8.05 for every bottle of spirit (40% ABV) and duty rates remains so high that 55% of the average priced bottle of wine and 74% of the average priced bottle of spirit is taken up in duty and VAT.

Furthermore, high inflation means that wine and spirit businesses have already had to deal with a painful 3.9% increase in duty in March 2017 at a time when the business environment was volatile, this volatility remains today.

As inflation remains high, so does the burden on businesses. The OBR forecasts that that wine and spirit businesses will have to pay an additional £1.2bn in alcohol duty per year by 2023, such a burden would significantly affect the industry and would restricts ambitions to invest and further innovate and also to fulfil export aspirations.

For more information on the WSTA Budget campaign, view our latest news stories below, and follow us across our social media channels – Twitter and LinkedIn.

Many businesses have already been affected by Brexit, whether that is through the devaluation of sterling, contingency planning or general uncertainty affecting trade. With little certainty and clarity, the WSTA is working hard to ensure businesses can continue to trade. This is why we launched our recommendations to Government in our report, ‘Planning for a No Deal EU Exit: The wine and spirit industry’s response’.

The WSTA has taken the following important steps:

  • Working to prevent a No Deal EU Exit through its ‘Don’t Bottle It: No To No Deal’ campaign;
  • Giving member businesses information and advice through regular briefings, planning guides, and seminars; and
  • Engaging regularly with Government to minimise the impact of Brexit from a policy perspective.

 

  • Report from MPs’ warns red tape will cause chaos and price hikes for wine

    A new report from a committee of MPs shines a light on the impact to UK wine businesses of...

  • Lords support WSTA’s calls to remove VI-1 burden for UK winemakers

    The House of Lords has debated an amendment to the Agriculture Bill which aims to reduce the burden of...

  • MPs to launch an inquiry into the impact of wine certification

    A Parliamentary inquiry begins next week looking into the impact of wine import certification being brought into force at...

  • WSTA reacts to UK Government’s intention to apply wine tariffs

    Following the UK Government’s signalled intention to apply wine tariffs when the transition period ends on 31 December, the...

  • WSTA launches Trade 21 initiative

    While the world grapples with how best to return to some sort of normality post Coronavirus, the Wine and...

  • WSTA welcomes joint statement on wine tariffs

    The Wine and Spirit Trade Association has today welcomed the announcement published by two leading wine sector organisations in...

  • VI-1 Victory for WSTA

    The Wine and Spirit Trade Association has welcomed the confirmation that Government intends to temporarily suspend import certification requirements...

Check our members benefits