Wine industry is ‘significantly disappointed’ with Budget 2024 

Responding to the Autumn Budget, WineGB CEO Nicola Bates said that the Budget was an opportunity for the government to help the English and Welsh wine sector by cutting the alcohol duty. 

However, Chancellor Rachel Reeves has announced an increase in alcohol duty rates on non-draught drinks in line with RPI figure for September this year, which was 2.7%. The increase will come into force on 1st February 2025. 

Ms Bates added: “We are significantly disappointed with Budget as the alcohol duty rise will not support our industry.  

“The government has missed an opportunity to accelerate growth and help Britain’s domestic wine producers succeed. We anticipate that the over £230 million fall in duty receipts for wine as a result of reduced sales seen last year will be repeated.   

“While there are some positives to take, such as the fuel duty freeze, reduction in business rates for hospitality and retail businesses, and funding for recruitment to support local planning and tax compliance, this Budget misses the mark.” 

READ MORE: Budget 2024: Price of wine and spirits increases but pints will be a penny cheaper

More pressure added

The WineGB CEO also said that the association is concerned by changes to agricultural Inheritance Tax relief.  

“We are working to understand what this will mean for our vineyards, many of which have diversified their offering into retail and hospitality and are family businesses that are being, or have already been, passed down through the generations.  

“We are still a very young industry with high production and establishment expenditure due to lower yields than other wine-producing regions, high labour costs, and spending associated with expansion.” 

Ms Bates added that the cumulative effect of National Insurance contribution rises, increases to the National Living Wage and higher Capital Gains Tax put on added pressure.  

“We call on the government to redress the balance and to support one of its success stories.   

“The government needs to recognise that English and Welsh wine production is not operating on a level playing field with other wine-producing countries, both in the UK and overseas.  

“We need a fairer tax regime to address the competitive disadvantage our producers face. For this to be achieved, we need a duty cut and the ABV band for lower duty calculation increased, as well as relief introduced at the cellar door and for small wine producers,” she continued. 

WineGB pointed out that the Budget has not addressed these omissions, and inequalities remain. 

READ MORE: WineGB calls on government to prioritise British wine industry 

New and emerging sector

The association said that the UK is still one of the few wine-producing countries in Europe that levies excise duty on home-grown and produced products, costing the average British producer and consumer an extra £2.67 a bottle. The increase in the tax cost the UK Exchequer over £230 million last year.   

Ms Bates concluded: “English and Welsh wine is still a new and emerging sector. This year we surpassed the 1,000-vineyard milestone and have been the fastest growing agricultural sector.

“We estimate that our producers will provide 30,000 multi-skilled jobs to mostly rural communities by 2040. The government has missed an opportunity to level up rural communities and boost the economy.

“We spent time showing how a new growth-focused government can support our sector through tax, grants, and enabling overseas opportunities. Without mitigating actions, the cumulative effect of the measures in this Budget mean that the opportunity to help the domestic wine industry has been missed.” 

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