The UK wine industry is bracing for significant challenges as the government prepares to implement changes to alcohol duty. Starting on 1 February 2025, the alcohol duty regime will introduce more than 30 different tax bands, significantly complicating the current system.

Steve Finlan, CEO of the Wine Society, has warned that the new tax rules will lead to price increases for consumers and could potentially force some wines off UK shelves.

The Wine Society, which has 180,000 members, joins a number of industry voices criticising the government’s approach to the new duty regime. Other major players in the wine trade, including Majestic Wine and Laithwaites, have voiced concerns. 

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This change will particularly affect wines with alcohol content between 11.5% and 14.5% ABV, which comprise approximately 80% of the UK market, according to the Wine and Spirit Trade Association (WSTA).

Under the new system, a bottle of wine at 14.5% ABV could see duty rise from £2.67 to £3.09. “The new duty system will have an impact on pricing across our industry and will result in higher costs for the UK’s wine consumers,” Finlan told the Daily Mail.

Industry leaders fear that higher prices could lead to reduced consumer spending, potentially decreasing tax revenues for the government. “This will restrict growth and threaten people’s livelihoods at a time when we should be doing everything we can to support our high streets,” said Majestic CEO John Colley.

Wine retailers have been lobbying the government to block the upcoming alcohol duty rise, in a bid to reform the system “before it’s too late”.

It is understood that Majestic and Cambridge Wine Merchants have emailed their customers to ask for support to scrap the new regulations by contacting their MP.

The email said: “Most concerningly for you, as discerning wine drinkers, the quality and choice of wine available for you to purchase is likely to be negatively impacted.”

“There is a genuine risk that the producers of your favourite wine will stop shipping it to the UK entirely, due to the additional administrative burden that will be involved.”