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Customers are being urged to “urgently” pressure MPs over a post-Brexit wine tax dubbed Rishi Sunak’s “sneaky Sauvignon surcharge”.
Major wine companies such as Majestic have asked customers to write to their member of parliament to highlight the issue before Rachel Reeves‘ Budget at the end of this month – to “get this ill-conceived policy stopped before it is too late”.
Many wine drinkers face paying more for their favourite tipple from February, as part of changes brought in after the UK left the European Union.
Experts and industry leaders have also warned the Tory reforms to booze levies could see some of Britain’s favourite bottles disappear from the shelves.
They say the move will raise the price of some red wines by more than 40p a bottle, as the number of tax bands for wine goes from one to 30.
The reform has been opposed even by a number of leading Bexiteers, including the former Tory leader Sir Iain Duncan Smith.
Then prime minister Mr Sunak announced the changes in the 2021 spending review, when he declared them a Brexit benefit and promised they would lead to a system that was “simpler, fairer, and healthier”.
The new regime will tax alcohol based on strength for the first time. Previously, levies were applied based on categories which included wine, beer, spirits and ciders. Experts warn that when it comes to wine alcohol levels can vary, because of a number of factors including the weather.
In the wake of the outcry over the plans, ministers delayed them last year, introducing instead a temporary flat tax for all wines between 11.5 per cent and 14.5 per cent alcohol by volume, a category which makes up 85 per cent of the more than one billion bottles sold each year in the UK. However, the new regime is due to end at the start of February.
A new campaign poster being sent to customers and displayed in shops warns that the new Labour government “has inherited a highly controversial alcohol duty system which is due to be implemented on 1st February 2025…. This change will not only increase costs and complexity for wine retailers, but could result in your favourite wine having to rise in price or potentially being removed from our ranges entirely.”
It adds: “We need your help to urgently raise this important issue to your newly elected local MPs, and get this ill-conceived policy stopped before it is too late.”
The Treasury has been approached for comment.
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