Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of increasing wine duty on the independent hospitality sector.

A Tax Information and Impact Note was published alongside the changes to alcohol duty announced at the Autumn Budget 2024. This is available here: https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating

The wine industry makes a vital contribution to our economy and society, which is recognised in the tax system. Ahead of the Autumn Budget 2024, the Government heard representations to increase alcohol duty by more than inflation to tackle increasing alcohol-related deaths, as well as economic inactivity. The Government is also mindful of the cost-of-living pressures on people who drink responsibly and on hospitality businesses and alcohol producers. Balancing these pressures, the Chancellor announced that she would uprate alcohol duty in line with RPI inflation.

The wine easement also ended on 1 February 2025. This was a transitional measure, which gave the wine industry over two years to adapt to the new system.  HMRC have worked closely with industry to support this transition.