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Wines: Excise Duties

Question for Treasury

UIN 20500, tabled on 25 February 2020

To ask the Chancellor of the Exchequer, with reference to the HMRC Alcohol Duty Statistics (October 2019), what assessment he has made of the effect of the increase in duty on wine in 2019 Budget on duty receipts from wine.

Answered on

4 March 2020

Announced at Budget 2018, Wine Duty rates on ‘wine of fresh grape’ and ‘made-wine’ at or below 22% Alcohol by Volume (ABV) increased by Retail Price Index (RPI) inflation from 1 February 2019.

Between February 2019 and January 2020, HMRC received £4,406 million from Wine Duty; an increase of £94.9 million (2.2%) compared to February 2018 to January 2019. The latest Wine Duty receipts are published in ‘HMRC tax receipts and National Insurance contributions for the UK’: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk.

HMRC do not receive information on brands, prices and volumes and are therefore unable to disaggregate how much of this increase is linked to the 1 February 2019 RPI rate rise compared to other wine market changes.

Answered by

Treasury