The Trade Protests at High Taxes
Posted on Mon 21st Mar 2016 at 12:21
The Wine and Spirit Trade Association (WTSA) is leading the calls for Chancellor George Osborne to reduce the amount of duty placed on wine and spirits.
As WSTA Chief Executive, Miles Beale, says: "The wine and spirit industry has faced difficult trading conditions over the past few years, seeing sales and revenues decline." Without cuts in excise duty, they argue, British businesses may be at serious risk. The industry currently supports around 600,000 jobs in the UK and contributes around £45 billion in economic activity. The proposed solution is for the Government to cut excise duty on wine and spirits by 2%, following the 2% cut on spirits duty and the freeze on wine duty in the last budget. There is evidence that these previous cuts were extremely beneficial for the UK industry, as Beale explains: “Evidence now clearly shows that these cuts are not only popular, but have led to greater revenue for the Exchequer, more jobs, greater investment by the industry and a better deal for consumers.” In hard numbers, the evidence shows that tax revenue from wine grew by a whopping £114 million between April and December last year. Revenue from spirits also grew £96 million in the same period. Despite the cuts, the UK still has the second highest excise tax in the EU – so there’s plenty of room for Osborne to keep cutting! Dropping tax on wine and spirits is not solely supported by those in the trade, Labour’s Ian Wright is also on side. The Hartlepool MP said: “The British wine and spirits industry is a true success, creating jobs and exporting great British goods around the world. The Chancellor should consider a reduction in duty to generate even more jobs and exports – we would all raise a glass to that."