Consumers are being urged to take action over a post-Brexit wine tax known as Rishi Sunak’s “sneaky Sauvignon surcharge,” sparking a call for pressure on MPs. Major wine companies like Majestic are calling on customers to write to their MPs before Rachel Reeves’ Budget later this month to raise awareness about the issue and prevent this policy from progressing any further.
The changes implemented after the UK’s departure from the European Union will result in many wine drinkers potentially paying more for their favourite beverages starting from February. Experts and industry leaders caution that the Conservative-led reforms to alcohol levies could lead to some of the beloved British bottles vanishing from shelves. The price of certain red wines may increase by over 40p per bottle as the number of tax bands for wine jumps from one to 30.
Even prominent supporters of Brexit, such as former Tory leader Sir Iain Duncan Smith, have spoken out against these changes. The alterations were announced by the then-Prime Minister Sunak in the 2021 spending review, touting them as a benefit of Brexit that would create a simpler, fairer, and healthier system. The new regime will tax alcohol based on strength for the first time, in contrast to the previous method which categorised alcohol into wine, beer, spirits, and ciders.
In response to the backlash against the plans, the government delayed the implementation last year and introduced a temporary flat tax for wines with alcohol content between 11.5% and 14.5%. This category represents 85% of the more than one billion wine bottles sold annually in the UK. However, this temporary system is set to expire at the beginning of February.
A campaign poster circulating among consumers and displayed in stores warns about the controversial alcohol duty system inherited by the new Labour government, which is scheduled for implementation on February 1, 2025. This change could lead to increased costs and complexity for wine retailers, potentially resulting in price hikes or the removal of favourite wines from store shelves. The campaign urges consumers to contact their local MPs urgently to raise awareness and halt this policy before it’s too late.
The Treasury has been contacted for comment on this issue.