Responding to the autumn Budget, WineGB CEO Nicola Bates said: “We understand the fiscal situation and the need for growth. Today’s Budget was an opportunity for the Government to help the English and Welsh wine sector to do just this with a duty cut and a levelling of the playing field. As such we are significantly disappointed with today’s Budget as the alcohol duty rise will not support our industry. 

“The Government has missed an opportunity to accelerate growth and help Britain’s domestic wine producers succeed. We anticipate that the over £230 million fall in duty receipts for wine as a result of reduced sales seen last year will be repeated.  

“While there are some positives to take, such as the Fuel Duty freeze, reduction in business rates for hospitality and retail businesses, and funding for recruitment to support local planning and tax compliance, this Budget misses the mark.

“We are concerned by changes to agricultural Inheritance Tax relief. We are working to understand what this will mean for our vineyards, many of which have diversified their offering into retail and hospitality and are family businesses that are being, or have already been, passed down through the generations.

“We are still a very young industry with high production and establishment expenditure due to lower yields than other wine-producing regions, high labour costs, and spending associated with expansion. The cumulative effect of National Insurance contribution rises, increases to the National Living Wage, and higher Capital Gains Tax puts on added pressure. We call on the Government to redress the balance and to support one of its success stories.  
  
“The Government needs to recognise that English and Welsh wine production is not operating on a level playing field with other wine-producing countries, both in the UK and overseas. We need a fairer tax regime to address the competitive disadvantage our producers face. For this to be achieved, we need a duty cut and the ABV band for lower duty calculation increased as well as relief introduced at the cellar door and for small wine producers.  

“Unfortunately, this Budget has not addressed these omissions and inequalities remain. The UK is still one of the few wine-producing countries in Europe that levies excise duty on home-grown and produced products, costing the average British producer and consumer an extra £2.67 a bottle. The increase in the tax cost the UK Exchequer over £230 million last year.  

“English and Welsh wine is still a new and emerging sector. This year we surpassed the 1,000-vineyard milestone and have been the fastest growing agricultural sector. We estimate that our producers will provide 30,000 multi-skilled jobs to mostly rural communities by 2040. The Government has missed an opportunity to level up rural communities and boost the economy.  

“We spent time showing how a new growth-focused Government can support our sector through tax, grants, and enabling overseas opportunities. Without mitigating actions, the cumulative effect of the measures in this Budget mean that the opportunity to help the domestic wine industry has been missed.”

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