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UK Autumn Budget a ‘Kick in the Teeth’ for Wine and Spirits

30 October 2024
By Louis Thomas in The Drinks Business
Image © The Drinks Business

The UK Autumn Budget offered a mixed picture for the drinks industry, with the incoming increase in non-draught duty leaving a bitter taste for many in the sector.

Ahead of today’s budget, the first for the Labour Government which was elected in July, there was a great deal of consternation from the drinks industry as to whether its concerns, especially those surrounding the highly contentious alcohol duty system introduced under Rishi Sunak, would be answered.

Addressing the House of Commons, Chancellor of the Exchequer Rachel Reeves, eschewing the historic tradition of having a drink at the despatch box, opened by saying that the “country voted for change” at the 4 July General Election, and that the Government would “restore stability to our economy, and bring a decade of national renewal”.

In a Budget which focused on “rebuilding our public services” and helping “working people”, Reeves also cited “very difficult decisions” around tax.

“I can confirm that alcohol duty rates on non-draught products will increase in line with RPI [Retail Price Index, at 2.7% in September 2024] from February next year,” Reeves stated. “But nearly two-thirds of alcoholic drinks sold in pubs are served on draught, so today, instead of uprating these products in line with inflation, I am cutting draught duty by 1.7%, which means a penny off the pint in the pub.”

This last point was met with a loud cheer, but for those in the wine and spirits sector, there does not seem to have been much worth cheering about. [READ MORE…]

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