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The wine and spirits industry is pushing back against what trade bodies are calling the UK's 'uniquely punitive' excise duty regime. The Wine and Spirit Trade Association (WSTA) is arguing that current tax levels are out of step with other markets, and they're backing their case with evidence that duty revenues are actually falling. It's a timely reminder of the tax pressures facing UK wine businesses.
The UK's new Extended Producer Responsibility tax, which came into force in January 2025, has already cost wine giant Vinarchy's UK arm at least £8 million. The levy, which applies to all packaging types and affects businesses with over £1m turnover handling more than 25 tonnes of packaging annually, was meant to shift costs from taxpayers to manufacturers. Vinarchy's accounts reveal the tax would've pushed the company into profit otherwise, highlighting just how significantly this new regulation is affecting the wine industry.
UK independent wine retailers are facing significant pressure from rising business rates, with one shop needing to sell over 12,000 bottles of wine just to cover its latest bill. The government's plan to phase out Covid-era rate discounts by April 2026 is creating a tough climate for smaller operators, particularly those relying on entry-level wine sales. While pubs and music venues received a 15% discount, similar support hasn't been extended to wine retailers, leaving many concerned about their future viability.
Essex police have seized 67,000 bottles of counterfeit wine and Prosecco worth around £500,000 in a coordinated operation across warehouses in Essex and North London. The investigation involved multiple authorities including the Food Standards Agency and Italian counterparts, with one person arrested for conspiracy to defraud. The National Food Crime Unit stressed that counterfeiting isn't victimless, as it erodes consumer trust and undermines legitimate businesses in the wine industry.
UK alcohol duty revenue has dropped £285 million despite repeated tax increases, according to new HM Revenue & Customs figures. Wine and other fermented products saw receipts fall by £100 million (4%) in the 2025-2026 financial year to date, whilst spirits suffered the sharpest decline with a 7% drop. The only bright spot is cider, which grew 21%, though it represents just 2.5% of overall alcohol duty receipts. The figures suggest that higher duty rates aren't translating into bigger tax takings for the Treasury.
The Welsh government's decision to include glass bottles in its Deposit Return Scheme has drawn criticism from the Wine and Spirit Trade Association, which argues the policy will prove costly and ineffective for the wine industry. The move represents a significant regulatory shift for wine businesses operating in Wales, affecting how bottles are handled and returned. This development highlights the ongoing debate between environmental goals and the practical challenges facing wine retailers and producers.
The UK has just moved to the top of Europe's wine tax league following a 3.66% hike in alcohol duty announced in the Budget. A bottle of full-bodied red wine will cost an extra 14p, with duty on 14.5% ABV wines now standing at £3.33, overtaking Finland's rate of £3.29. Industry bodies warn the increase will add further pressure to already squeezed pub and brewery profit margins, with a pint of beer expected to rise by around 2p as a result.
The UK Government's just announced a £725m apprenticeship reform that'll affect hospitality pretty heavily, including wine venues and restaurants. They're covering full training costs for under-25s at small businesses and rolling out foundation apprenticeships from 2026, but industry leaders are worried the scheme won't work unless struggling hospitality businesses actually have jobs to offer. Worth watching since it could reshape how hospitality, including on-trade wine venue, recruits and trains staff.
The Drinks Business is reporting that Chancellor Rachel Reeves's Budget claims about a "golden era" for hospitality are being called out as smoke and mirrors. Pubs and restaurants are facing massive hidden tax hits through business rates revaluation, the end of Covid relief, and spiralling wage and alcohol duty costs - the industry's warning it could trigger another wave of closures across the on-trade.
WineGB's taken a swipe at the autumn Budget, calling out yet another alcohol duty hike that unfairly hammers domestic producers at a crucial moment for UK wine's global reputation. The trade body's frustrated that the Chancellor didn't help stimulate demand or tackle VAT and business national insurance, though they're pleased about the free apprenticeship scheme for under-25s in SME, reckoning it'll help bring fresh talent into the sector.
The Wine and Spirit Trade Association is firing back at the Chancellor over yet another tax increase on alcohol in the Autumn Budget. The WSTA's clearly frustrated that the industry's concerns went unheard, and this latest raid will hit everyone down the supply chain hard.