Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of changes to wine duty announced in his Alcohol Duty Review on (a) inflation and (b) the cost of living.
As announced at Autumn Budget 2021, the Government intends to move to a duty system where all wines are taxed in reference to their alcohol content, as is already the case for beer and spirits. Subsequently, some higher strength still wines will increase in duty, while lighter wines (below 11.5% alcohol by volume – ABV) will become cheaper. For lower strength wines below 8.5% ABV, duty rates will be reduced even further.
Further detail about the impact of our alcohol duty reforms will be included in a tax information and impact note when the policy is final, or near final, in the usual way.