Wine

Sir, What a shame it would be if the Chancellor does not recognise the economic value of the drinks industry and decides to revert to the easy target of duty increases.

Between February and August this year, immediately following the freeze on alcohol duty, the Treasury raised an additional £380m, up 6% compared with the same period the previous year. Holding the duty works, but ignoring this and implementing an increase anyway could impact negatively on jobs, investment and exports.

At the same time, increasing taxes on wines and spirits and arguing this is a measure to encourage lower alcohol consumption is a cop-out. There’s a growing trend of people drinking less and placing more emphasis on quality. Wines and spirits have become increasingly artisan and premium over recent years, with these types of drinks amongst those most likely to be enjoyed responsibly for their taste.

Furthermore, the financials behind the 3.4% duty hike simply don’t add up. If the target is to raise funds to the tune of £20bn, then surely placing significant fiscal pressures on an industry generating around £50bn in economic activity and supporting half a million jobs is not the way to do it. Increasing duty will risk employment, innovation and economic prosperity.

Let’s hope the Chancellor sees sense and alcohol duty isn’t raised with the red briefcase on Monday 29 October.

John Armstrong, technical director, Global Brands

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