Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the effect of the review of excise duties on wine and subsequent price impacts on small businesses and independent wine sellers of higher strength and higher value wines.

The Government believes the reforms announced at the Budget will produce an alcohol duty system that is overall simpler, fairer and healthier.

The reforms announced at Autumn Budget 2021 mean higher strength still wines will pay more duty, while lighter wines (below 11.5% alcohol by volume – ABV) will become cheaper.

The Government also announced that the 28% higher duty rate on sparkling wine will be abolished, so that sparkling wines will pay considerably less duty in future. From 2023 sparkling and still wines of the same strength will pay the same duty.

The Government is continuing to engage with industry – including small businesses – for further information about the effect of the changes on them. Industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.