UK: Beer, wine duty up; spirits frozen

By just-drinks.com editorial team | 21 March 2007

UK Chancellor Gordon Brown has introduced index-linked increases to duty on beer, cider and wine in his latest Budget today (21 March).

The Chancellor said that the duty on beer, cider and wine would rise in line with inflation. The tax on beer and cider will increase by 1p (US$0.02), while still wine faces a tax rise of 5p. The tax on sparkling wine, however, will rise by 7p.

Spirits duty, however, was frozen, a decision welcomed throughout the UK spirits industry.

"This is a welcome further step towards delivering a fairer alcohol tax regime in the UK," said Edwin Atkinson, director general at the Gin and Vodka Association.

Gavin Hewitt, chief executive of the Scotch Whisky Association, said the duty freeze comes at a time when distillers face rising raw material costs.

Hewitt said: "Excise duty stability is supporting industry competitiveness in the home market, as it looks to continue to grow overseas."

Barry Chevallier Guild, a partner at UK cider producer Aspall Cyder, told just-drinks that the increase in the tax on cider "was to be expected" after a duty freeze for two successive years.

He added: "Duty has risen in line with beer and the fear was that it would rise above that."

Sectors: Beer & cider, Spirits, Wine

Companies: Scotch Whisky Association