Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he has taken to ensure that new rules for alcohol excise duty will not disproportionately burden the UK's wine industry.

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

The Government believes it is appropriate to charge different rates of duty on drinks based on their alcoholic strength, with stronger drinks paying more duty and lower ABV drinks paying less duty. To minimise differences between categories of drinks, for the first time all products at 8.5% ABV or above will pay the same rate of duty regardless of the product type. This will also be true of products below 3.5% ABV. The existing system of taxing wines above 22% ABV in line with spirits on the basis of their pure alcohol content will continue. The Government also believes it is right to move wine to be taxed in proportion to its strength, as is already the case for beer and spirits. These reforms will result in lighter still wines below 11.5% ABV and many sparkling wines becoming cheaper, while higher strength still wines will pay more duty.

The Government is continuing to engage with industry, and industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.