LABOUR’S VICTORY: A NEW HOPE FOR THE WINE AND SPIRITS INDUSTRY?

The recent landslide victory by the Labour Party has set the stage for a promising collaboration between the new government and the wine and spirits industry. The Wine and Spirit Trade Association (WSTA) has swiftly called on the incoming government to prioritise the sector in its economic growth agenda.

Keir Starmer and Rachel Reeves, the future Chancellor of the Exchequer, have highlighted economic growth as a foundation of their manifesto. The WSTA emphasised the impact of the UK wine and spirit industry, which contributed £22 billion in Gross Value Added and £76.3 billion in economic activity in 2022, as well as just under half a million jobs.

That being said, the WSTA has expressed urgent concerns about proposed changes to wine taxation as the duty is only frozen until  February 2025. Any increases, if implemented, would be disastrous for many businesses, particularly small and medium enterprises, in turn leading to higher consumer prices.

Miles Beale the WSTA’s chief executive stresses the need for a stable policy environment that will support long-term planning. He feels that maintaining the current wine duty easement aligns with Labour’s commitment to creating a strategic business tax regime.

The Campaign for Real Ale (CAMRA) also welcomes the new government, expressing hopes for more support for pubs and producers of beer and cider. CAMRA Chairman Nik Antona is optimistic about Labour’s five-point plan to halt the decline of British pubs and looks forward to reforms in planning protections and business rates.