Duty continues to rise on wine but at least slowing down

Call time on Duty campaigners - a campaign spearheaded by The Wine and Spirit Trade Association (WSTA), Taxpayer’s Alliance and Scotch Whisky Association to end the alcohol duty escalator (ADE) - were victorious yesterday as Chancellor George Osborne announced he would be scrapping the Alcohol Duty Escalator in this year’s Budget.

Since it was introduced in 2008, tax on wine has increased by 50% and by 44% on spirits which campaigners argued was costing the industry “vital jobs and unfairly hitting consumers in the pocket”. The news will be widely welcomed by consumers and businesses.

However, the 2014 Budget was bittersweet for wine drinkers. Wine duty will still rise in-line with inflation, which was running at around 2% at the latest count, while there will be a one pence per pint duty cut for beer and a total freeze on spirits duty.