Call for 2% cut in excise duty
15 Dec 2014
UK distillers and wine industry launch 'Drop the Duty!' campaign
calling for a 2% cut in duty
- New report highlights the economic benefits of wine and spirits
- Campaign calls on all consumers to speak out on the unfair
level of tax
A 2% cut in duty on wine and spirits would give Chancellor
George Osborne a £1.5 billion boost to the public finances in 2015,
new industry analysis by EY has today revealed.
The Wine and Spirit Trade Association (WSTA)and Scotch Whisky
Association (SWA)will today launch their 'Drop the Duty!' campaign,
calling for a 2% cut in alcohol duty at the next UK Budget in March
The 'Drop the Duty!' campaign (www.droptheduty.co.uk),
supported by the TaxPayers' Alliance, being unveiled today at The
Punch Tavern in London, aims to raise awareness of the extremely
high rate of tax UK consumers currently pay and mobilise the public
to take action.
UK consumers currently pay nearly 80% tax on an average priced
bottle of spirits and almost 60% on an average priced bottle of
wine. On a category basis, that means 78% tax on whisky (£10.06 on
an average bottle); 79% tax on gin (£10.03 on an average bottle);
76% on vodka (£9.48 on an average bottle); and 56% tax on a bottle
of wine (£2.93 on an average bottle).
A 2% cut in duty would boost public finances by £1.5bn through
increased investment across the industry; greater tax income from
corporation tax and VAT; and from the benefits of jobs created in
pubs, bars, restaurants, shops and the wider supply chain.
Key findings of the EY report include:
- A 2% duty cut would increase the wine and spirits industry's
contribution to economic activity by £3.9bn, from £46.6bn to
- The industry's direct contribution to UK Gross Domestic Product
would increase by £0.9bn, from £11.8bn to £12.7bn.
- The wine and spirit industry directly or indirectly supports
around 518,000 jobs in the UK in 2014, with the majority (69%)
directly dependent on the industry's activity.
Using the strapline, 'Small drop, big cheer', the 'Drop the
Duty!' campaign is calling on all UK consumers to take action and
speak out about the unfair level of tax by emailing their MP via
the campaign website (www.droptheduty.co.uk)to
urge George Osborne to make this modest 2% cut in duty across all
alcohol products in Budget 2015.
The Punch Tavern on Fleet Street has, for today only,
transformed into 'George's World' where everything is done in line
with the wishes of Chancellor George Osborne in order to highlight
the inequality UK businesses and consumers face.
Miles Beale, chief executive of the Wine and Spirit Trade
"The wine and spirit sector already makes a significant
contribution to the wider hospitality industry and to the British
economy. Independent analysis from EY shows that the sector's
economic contribution could be £3.9 billion greater if it weren't
for the UK's sky-high duty rates.
"By cutting the duty on wine and spirits at the next Budget the
Chancellor would provide welcome relief for the British public,
boost jobs and growth and generate an additional £1.5bn for the
"It is important that the Chancellor hears this message directly
from consumers so I am encouraging all our supporters to make their
voice heard by joining the 'Drop the Duty!' campaign and emailing
their MP at www.droptheduty.co.uk."
David Frost, chief executive of the Scotch Whisky Association,
"If you buy a bottle of Scotch Whisky to celebrate Christmas and
New Year, nearly 80% of the average price you pay goes straight to
the Government. This is unfair on both consumers and the
Scotch Whisky industry. We are calling for George Osborne to do the
right thing and cut excise duty by 2% in next year's Budget.
"New evidence shows that lowering these draconian levels of
excise duty would actually boost public finances and the economy,
as well as benefit consumers."
Jonathan Isaby, chief executive of the TaxPayers' Alliance,
"Politicians keep talking about a cost of living crisis but if
those on the lowest incomes fancy a drink, they will pay through
the nose in taxes. Over half the cost of an average priced bottle
of wine and over three quarters of an average priced bottle of
spirits now goes straight to the Taxman. This is not only hurting
hard-pressed consumers, but jobs and growth too. The Chancellor has
one more chance to be fair and cut the duty on wine and spirits
before the election, and it's crucial that he takes it."
Notes to editors
For more information or a copy of the EY report please
Rosemary Gallagher, Scotch Whisky Association communications
manager, Tel 0131 222 9230 or 07432 605385 or email firstname.lastname@example.org
- The campaign website will be: www.droptheduty.co.uk
- You will be able to follow us on twitter for more news and
About the launch - images and interview opportunities:
The campaign will be officially launched on Monday 15 December
at The Punch Tavern, 99 Fleet Street, London, EC4Y 1DE. Photos and
collateral from the launch will be available from 09:15.
B-roll footage and pre-recorded audio interviews will be
available after the launch at approximately 15:00.
About the WSTA: The Wine and Spirit Trade Association (WSTA)is
the UK organisation for the wine and spirit industry representing
over 340 companies producing, importing, transporting and selling
wines and spirits. The WSTA works with its members to promote the
responsible production, marketing and sale of alcohol.
About the SWA: The Scotch Whisky Association is the industry's
representative body and promotes the long-term, global interests of
Scotch Whisky as a high quality spirit drink, of its 57 member
companies, and the Scotch Whisky industry overall.
About the TPA: Founded in 2004 by Matthew Elliott and now with
80,000 supporters, the TaxPayers' Alliance (TPA) fights to reform
taxes, cut spending and protect taxpayers.