2015 Budget Report
THE WINE AND SPIRIT TRADE ASSOCIATION
18 March 2015
Budget 2015: main changes
Following the WSTA’s successful Drop the Duty campaign, the Chancellor announced further support for
the industry with a 2% cut in spirits duty and a freeze in duty for wine. This is the fourth time spirits duty
has been cut in a century, the last time being in 1996 and the first time wine duty has been frozen since
1997. The changes are expected to save the wine and spirit industry £100m in new tax liabilities.
This means:
•
Duty on a 750ml bottle of wine remains at £2.05p
•
Duty on a 750ml bottle of sparkling wine remains at £2.63
•
Duty on a 70cl bottle of vodka at 37.5% is now £7.26, down 15p
•
Duty on a litre bottle of vodka at 37.5% is now £10.37, down 21p
•
Duty on a 70cl bottle of Gin at 40% is now £7.75, down 15p
•
Duty on a litre bottle of Gin at 40% is now £11.06, down 23p
The revised rates are due to come into effect after midnight, Sunday 22rd March. The rate of inflation is
0.9%, which is the rate duty would have increased if it were not for these changes. This is calculated by
using the RPI estimate for September 2015 provided by the Office of Budget Responsibility.
Budget 2015: WSTA’s reaction
Miles Beale, Chief Executive of the WSTA said:
“We are delighted that the Government has listened to consumers and taken action to address the UK’s
excessive spirit duty rates. This small drop in duty will result in a big cheer for the UK’s 24 million spirit
consumers.
We are grateful to those MPs who listened to their constituents and supported our campaign and
hope that all parties are able to support the measures outlined today and build on them in the next
Parliament.”
We campaigned for a cut in duty across all products and are disappointed that the UK’s 30 million
wine consumers did not receive a duty cut too. We would also have like to see greater support for the
burgeoning English wine sector. But freezing wine duty is an improvement and a first step towards
supporting wine businesses that are looking to invest in the UK, create jobs and back British pubs.”
The Wine and Spirit Trade Association
International Wine & Spirit Centre / 39-45 Bermondsey Street / LONDON SE1 3XF
t +44 (0)20 7089 3877 / f +44 (0)20 7089 3870 / e [email protected]
Registered Number: 410660 England Limited by Guarantee VAT Number: GB 243 8280 60
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Budget 2015: excise duty rates
Drink Category
Spirits
Spirit-based RTDs
Sll and made-wines: exceeding
5.5% but not exceeding 15% vol
Unit of Previous New rate % Change Excise duty (per Excise duty (per
Measure
rate
2014/2015
case)
bole)
(March
2014)
per l i tre
£87.13 (per 12 £7.26 (per 70cl a t
£28.22
£27.66
-1.98%
of pure
a l cohol
per l i tre
of pure
a l cohol
per hl
per hl
Sparkling wine and made-wine
exceeding 5.5% but not
exceeding 8.5% vol.
per hl
Sparkling wine and made-wine
exceeding 8.5% but not
exceeding 15% vol.
per hl
Sll and made-wines exceeding
15% but not exceeding 22% vol
Wine and made-wines 1.2% - 4% per hl
abv (including wine & cider
based RTDs)
per hl
Wine and made-wines 4% 5.5%abv (including wine & cider
based RTDs)
Beer (for every 1% vol) General per hl per
1%
beer duty (2.8 to 7.5%)
bole case)
37.5%a bv)
£28.22
£27.66
-1.98%
£5.02 (per 12
bole case)
£0.42 (27.5cl
@5.5%)
£273.31
£273.31
0.00%
£24.60 (per 12
bole case)
£2.05 (per 75cl )
£264.61
£264.61
0.00%
£23.81 (per 12
bole case)
£1.98 (per 75cl )
£350.07
£350.07
0.00%
£31.51 (per 12
bole case)
£2.63 (per 75cl )
£364.37
£364.37
0.00%
£2.73 (per 75cl )
£84.21
£84.21
0.00%
£32.79 (per 12
bole case)
£7.58 (per 12
bole case)
£115.80
£115.80
0.00%
£18.74
£18.37
-1.97%
£5.48
3.59%
£8.10
-6.00%
£38.87
-1.99%
per hl per £5.29
Beer - High strength (for every
1%
1% vol) in addion to General
beer duty (exceeding 7.5% abv)
Beer - Lower Strength (for every per hl per £8.62
1%
1% vol - exceeding 1.2% not
exceeding 2.8%abv)
hl
Cider & Perry exceeding 1.2%
£39.66
but not exceeding 7.5%
Cider & Perry exceeding 7.5%
but not exceeding 8.5%
hl
£59.52
£58.75
-1.29%
Sparkling Cider & Perry
exceeding 5.5% but not
exceeding 8.5% contained in
boles with mushroom stoppers
or with a pressure of 3 bar or
more
hl
£264.61
£264.61
0.00%
£10.42 (per 12
bole case)
£0.63 (per 75cl )
£0.87 (per 75cl )
£4.41 (per 12 £0.42 (per pi nt Per
pi nt a t 4%a bv)
boles @ 500ml)
£2.33 (per 12
bole case @
500ml)
£3.53 (per 12
bole case @
500ml)
£23.81 (per 12
bole case)
£0.22 per pi nt
£0.33 per pi nt
£1.98 per bol e
(75cl )
The above duty rates come in effect after midnight, 22rd March
The full rates can be found on the Finance Bill here: https://www.gov.uk/government/publications/
finance-bill-2015-overview-documents-at-budget-2015
And will be shortly updated on the HMRC website here: http://www.hmrc.gov.uk/rates/alcohol-duty.htm
The Wine and Spirit Trade Association
International Wine & Spirit Centre / 39-45 Bermondsey Street / LONDON SE1 3XF
t +44 (0)20 7089 3877 / f +44 (0)20 7089 3870 / e [email protected]
Registered Number: 410660 England Limited by Guarantee VAT Number: GB 243 8280 60
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Budget 2015: additional measures
The Chancellor announced a range of other business related matters including:
• Corporation tax will fall to 20 per cent in April 2015, a fall of 8 per cent since 2010;
• The fuel duty increase scheduled for September has been cancelled, marking the longest duty freeze
in over twenty years;
• A string of measures will be introduced to build the “Northern powerhouse” and devolve powers,
including some regions retaining 100% of business rates raised;
• Farmers will be able to average their incomes for tax purposes over five years;
• The minimum wage will rise to £6.70 this autumn.
Further information:
• Full Budget 2015 documents - https://www.gov.uk/government/publications/budget-2015-documents
• HM Revenue & Customs Overview - https://www.gov.uk/government/collections/budget-2015-hmrevenue-and-customs
Contacts
Carlo Gibbs, Policy and Public Affairs Manager
[email protected]
+44 (0)20 7089 3871
Antonia Fordyce, Research and Insights Manager
[email protected]
+44 (0)20 7089 3880
The Wine and Spirit Trade Association
International Wine & Spirit Centre / 39-45 Bermondsey Street / LONDON SE1 3XF
t +44 (0)20 7089 3877 / f +44 (0)20 7089 3870 / e [email protected]
Registered Number: 410660 England Limited by Guarantee VAT Number: GB 243 8280 60
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