Wine Duty Debate

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Department: HM Treasury
Tuesday 5th March 2024

(9 months, 2 weeks ago)

Westminster Hall
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Will Quince Portrait Will Quince
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I thank my right hon. Friend for his intervention. He is right to champion the cause of the Wine Society, which is based in his constituency. There is both a significant cost implication and an administrative burden for such organisations, so the impact of these changes should not be understated.

The easement that is set to end on 1 February 2025 will affect wine businesses ranging from major retailers such as the big supermarkets to specialist retailers such as Majestic. However, as my right hon. Friend has just alluded to, there are also thousands of independent wine merchants who have all said that having to implement fully the strength-based system would impose significant costs, running to many millions of pounds, both in the short term and once the necessary systems are established.

Priti Patel Portrait Priti Patel (Witham) (Con)
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I thank my hon. Friend for giving way and for his great speech. We are constituency neighbours and he knows that it is not just wine merchants that will be affected but thousands of wine businesses across the UK. We have a strong and flourishing wine sector, but this regime has failed to meet one of the original key objectives that the Treasury sought to establish, which was to make the system easier to administer. Instead, unit labelling and ABV is putting a burden on producers and merchants, which means that they face pricing and cost implications. Does my hon. Friend agree that this is increasing red tape at a time when the Government should be doing much more to reduce it and ease the costs and the burdens of regulation for businesses?

Will Quince Portrait Will Quince
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My right hon. Friend and constituency neighbour is absolutely right to raise that issue, and she has long championed cutting the red tape and bureaucracy that British businesses face. As my right hon. Friend the Member for Stevenage (Stephen McPartland) said, this unintended consequence means that business faces not just extra cost but the significant administrative burden that comes with cost and time. My right hon. Friend the Member for Witham (Priti Patel) is right to point out that the new system is not simpler or fairer and that it has a huge cost implication.