Brexit wine tax sparks call for consumers to pressure MPs
- A new wine tax in the UK will take effect on February 1, 2025, increasing the number of tax bands from one to thirty.
- Experts warn that this reform could lead to significant price increases for consumers and the removal of popular wines from the market.
- Wine companies are encouraging customers to pressure their MPs to halt the implementation of this controversial policy before it is too late.
In the UK, customers are being urged to contact their MPs regarding a new wine tax set to take effect on February 1, 2025. This tax, introduced as part of post-Brexit reforms, will significantly alter the alcohol duty system, increasing the number of tax bands for wine from one to thirty. Experts warn that this change could lead to price hikes of over 40p per bottle for some red wines and may result in popular wines being removed from shelves altogether. The reforms have faced opposition from various political figures, including former Tory leader Sir Iain Duncan Smith, who have criticized the policy as ill-conceived. The changes were initially announced by then-Prime Minister Rishi Sunak in the 2021 spending review, where he claimed they would create a simpler and fairer system. However, due to public outcry, the implementation was delayed, and a temporary flat tax was introduced for wines with alcohol content between 11.5% and 14.5%. As this temporary measure is set to end, wine companies like Majestic are mobilizing consumers to voice their concerns to local MPs ahead of the upcoming Budget announcement by Rachel Reeves. The campaign emphasizes the urgency of addressing the controversial alcohol duty system inherited by the new Labour government, highlighting the potential negative impact on both consumers and retailers.