To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of proposed reforms to alcohol duty on the diversity, choice and quality of wines available to UK consumers.
25 February 2022
As part of the alcohol duty review, the Government has announced several reforms which aim to modernise the taxation system for wine.
By moving to a duty system where all wines are taxed in reference to their alcohol content, the Government intends to incentivise innovation of lower strength wines, providing greater choice to wine consumers. In addition, the Government has announced it will equalise still and sparkling wine rates, helping to spur innovation among British sparkling wine producers.
The Treasury is continuing to engage with other Government departments and interested stakeholders on these reforms. A consultation ran from 27 October 2021 to 30 January 2022, and the Treasury is now analysing the responses.
Further detail about the impact of reforms on producers will be included in a tax information and impact note when the policy is final, or near final, in the usual way.