Wine duty goes up in 2016 Budget

Since George Osborne announced the budget yesterday (16th March) the big item in the news has been about the sugar tax but what did it have in store for us wine drinkers? Wine was the only alcoholic drink not to benefit from a tax freeze. And those that roll their own tobacco were also hit. Taxes on beer, cider and whisky were frozen. The wine industry reaction is one of disappointment. Whilst last year the duty on wine was frozen, beer and spirit duties were cut. This year has seen a freeze on beer and spirits and yet again the wine industry feels penalised. Is this because most wine is imported into the UK and how does the budget show support for the emerging English wine industry? With wine duty in the UK the second highest in the EU, over half the price of a £5 bottle of wine is tax. Just 45p left over to make the wine itself. However if you spend just a few pounds more you get a lot more wine for your money - for a £10 bottle of wine there is £2.83 to make the wine whilst 37.5% goes on tax.