Local vineyards are excluded from Government plans to help small producers

In the recent mini-budget on 23 September the Government outlined its plans for a revamped alcohol excise duty system, part of which introduces a Small Producers’ Relief Scheme to enable a reduced level of duty for smaller producers of alcoholic beverages which allows them to compete against larger companies. However, the scheme only applies to products of 8.5% ABV or below, which effectively excludes wine. Small cider and beer producers will benefit from these plans and in the case of the smallest cider producers, they will be entirely exempt from paying duty.

WineGB and its 500 producer members are therefore calling on the Treasury to uphold the objective of creating a fair and simple excise duty scheme and grant our small producers access to Small Producer’s Relief.

Simon Thorpe MW, CEO of WineGB, commented: “Despite the Government’s aim of creating a fair and simple alcohol duty taxation system, our wine producers have been inexplicably excluded. This potentially stifles growth in the fastest growing agricultural sector in this country and is fundamentally unfair to our small producers.”

There are now over 900 vineyards in the UK, they make internationally recognised quality wines, they boost the local economy by providing jobs and are creating a rapidly growing wine tourism industry which has huge potential to attract more domestic and international visitors.

Simon Thorpe added: “The vast majority of our vineyards and producers are small businesses and it is not right that they are being unfairly treated by being denied the support that beer and cidermakers are afforded.

“In short, this is a British success story whose benefits stretch well beyond making wine and should be celebrated and supported, not left in the cold.”

This story was taken from the latest issue of Vineyard. For more up-to-date and in-depth reports for winemakers and growers in Great Britain, read our latest issue here and subscribe here