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31.07.2023 - 12:45 / manchestereveningnews.co.uk
Drinkers across the country will see prices skyrocket this week due to rises in duty tax.
It comes from a systemic overhaul from Rishi Sunak when he was acting as chancellor in 2021. The system aims to encourage consumers to cut back by raising taxes on alcohol based on its strength, instead of categories.
Similarly, Chancellor Jeremy Hunt announced in March's budget that there would be a freeze on alcohol duty until August 1 and an increase by inflation at 10.1 per cent. The increases will see duty rise by 44p on a bottle of wine while 18% cream sherry will go up from £2.98 to £3.85.
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The total tax on a bottle of gin or vodka will go up by around 90p.. Mr Sunak described the overhaul as “the most radical simplification of alcohol duties for over 140 years”, enabled by Britain’s exit from the EU.
WSTA chief executive Miles Beale said: “We are careering towards an extremely tough period for wine and spirit businesses with tax hikes and other costs, including a prolonged cost of living crisis for their consumers, persistently high inflation, especially for food and drink, and rocketing prices for glass, leaving little room for many businesses to turn a profit. Inevitably some won’t be able to stay afloat, with SMEs most at risk.
“Amongst all this pressure the Government has chosen to impose more inflationary misery on consumers on August 1, with the biggest single alcohol duty increase in almost 50 years. Ultimately, the Government’s new duty regime discriminates against premium spirits and wine more than other products.
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