Wine Duty

Debate between Will Quince and Julian Sturdy

Tuesday 5th March 2024 Westminster Hall

[Will Quince]

The hon. Gentleman is right to intervene on that point, because job creation and retention, including in his constituency, is important, as is our flourishing tourism sector. The growth in wine production across our country is something that we should celebrate; we should be proud of that and support it.

This debate is timely because we have some time on our hands. Obviously, the sooner we give notice to industry that the easement can continue, the lower the cost and administrative burden borne by industry. We have until 1 February 2025 to address this issue. I will have an ask for the Minister in a few moments, which I hope the hon. Gentleman will agree with.

I will just touch on one other element first, which is why wine is different. The easement recognises that wine is different from other categories of alcoholic drink. Wine cannot be made to a predetermined strength; the alcoholic strength of wine is determined by climate. I know that I do not need to teach anyone in this Chamber to suck eggs, but wine from warmer climates tends to be higher in alcohol than wine from cooler climates. Wine is not like beer or cider. And wine is subject to strict production rules, so in that respect it is also unlike beer and cider. As a consequence, there is very little that wine makers can do to lower the alcohol content.

It is estimated that there are over 100,000 different wines on the UK market. By comparison, there are less than 1,000 different ciders. Different vintages of wine can vary in strength, as is the case with some wines from the same year. Of course, that is one of the great pleasures of wine; wines from around the world are unique, while different vintages from the same vineyard can differ in strength and taste.

Taxing alcohol by strength, with lower rates for lower-strength products, might seem simpler on paper, but it takes absolutely no account of how different alcoholic products are consumed, including in what quantities and whether the product is diluted. This new system is much more complicated to administer for wine businesses and it penalises wine from warmer climates.

The differences between wine, spirits, beer and cider will remain if the easement ends. In practice, if the easement is abolished as planned, there will be 30 different payable amounts for wine in the 11.5% to 14.5% ABV range.

[Julian Sturdy (York Outer) (Con)]

My hon. Friend is making an important argument. I met with Liquid Indulgence, a small wine supplier in my constituency that supplies commercial businesses around York, as well as selling direct to customers. The point my hon. Friend is making is exactly what that small business said to me about the impact this change would have on that business and whether it could continue. It will surely have a massive impact on small wine suppliers across the country, and will potentially have a negative impact on what those businesses can bring in in tax, compared with what the Government are trying to achieve.

[Will Quince]

My hon. Friend is right to raise that point on behalf of the small wine supplier he represents in York. Of course, this change will have a massive impact. When Majestic originally brought this matter to my attention, it did so not just on its own behalf, but on behalf of the thousands of wine organisations and companies across the country, ranging from one-person bands through to small and medium-sized enterprises, all of which will bear the administrative burden of this cost.

I want to reiterate one point. If this easement ends—I hope it is “if”, as I very much hope the Minister listens and it will not end—there will be 30 different payable amounts for wine across the 11.5% to 14.5% ABV range. Prices will range from £2.45 to £3.10 per bottle. The practical arrangements that would need to be made as a result of this change are countless, including the reality that two wines from the same independent vineyard in France, say, would have to be labelled differently.