With two weeks until the Budget announcement, WineGB is calling on the Government to prioritise the English and Welsh wine industry by reducing duty and providing support for growth.
In its Budget submission, WineGB urges the Government to provide greater support for the English and Welsh wine industry, which is currently operating at a competitive disadvantage compared with other wine-producing nations.
The UK is one of the few wine-producing countries in Europe that levies excise on home-grown and produced wines – costing the average British producer and consumer an extra £2.67 a bottle. 10 European countries apply no excise duty on domestically produced sparkling wines (France only applied a rate of €0.07 in 2022), while 15 countries have no excise duty on home-grown still wines (France applied €0.03). This does not constitute a ‘level playing field’ on which GB wines can fairly compete, both domestically and internationally.
As the fastest growing agricultural sector, it is time the Government recognised the value of the domestic wine industry. As well as a duty cut, WineGB is calling for the introduction of a Cellar Door Relief scheme to encourage further investment in tourism facilities and infrastructure by providing full relief from the excise duty payable on a set number of bottles sold from the premises/vineyard.
In addition, a reform of Small Producer Relief by creating alcohol specific thresholds – rather than it only applying to products with less than 8.5% ABV – would enable wine producers to have a level playing field with beer and cider makers. Capital set up costs are considerably greater in wine than other categories due to the time it takes for vines to crop; the short window that presses and harvesting equipment are used; and the length of time taken to mature a wine. Providing this relief will reduce barriers to entry and open up the sector to more potential growers and winemakers.
WineGB CEO Nicola Bates said: “We want to support the Chancellor achieve her economic growth plans. By cutting duty, introducing Cellar Door Relief, and reforming Small Producer Relief, she can accelerate our growth in this important stage in our development. Duty rates are acting as a lag to the level of growth we can have and a cut to overall duty, or reliefs, would provide considerable reassurance for our businesses and enable them to invest and grow.”