The government has been urged to collaborate with the drinks industry to reduce the cost of non-alcoholic beers and wines. Mark Pritchard, the MP for The Wrekin, advised health minister Andrew Gwynne to explore ways to lower prices for these drinks.
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With the UK general election just a whisker away and the current Prime Minster all but admitting a crushing defeat, the WSTA has issued an open letter calling on the incoming government to make permanent the duty easement.
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With issues such as cash flow, VAT, businesses rates and staffing all placing continued strain on the UK drinks industry, businesses have just a few days left to decide which parties’ pledges have the best hope of steering the sector towards prosperity.
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Ahead of the General Election and also English Wine Week, WineGB has launched its Manifesto for Growth which identifies the three main areas which require support from the new government.
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The UK government recently announced that it would create 20,000 new apprenticeships by reforming the complex, paperwork-fuelled, resource-thirsty apprenticeship levy system for SMEs. A move that should benefit hospitality businesses up and down the country by bringing in new blood at the beginning of their careers. Phrases like ‘cut red tape’ and ‘regulatory burdens slashed’ appear throughout the government’s official, grand announcement – but forgive me if I retain my cynicism for now. This is coming from a government that has done nothing but increase the burden on business. And I’ll come back to that shortly.
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Someone once told me that you know what your ideal job is when you enjoy it so much, are so motivated to get up and crack on every morning, that you’d do it even if you weren’t paid. That’s perhaps a bit unrealistic for most people whose primary motivation is to earn money to live, but the point is clear. It helps a lot if you love what you do.
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Miles Corish MW, MD of Milestone Wines, takes issue with ‘a classic case of smoke and mirrors’.
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Tax revenues from so-called ‘sin taxes’ levied on alcohol, tobacco, gambling and sugary drinks have fallen to 3.1% of total UK tax receipts, according to HMRC figures for 2022-2023.
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Following a review of business payments and cash flow, the government has found that small and medium-sized enterprises (SMEs) were owed on average £22,000 in late payments in 2022.
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It doesn’t seem to matter what flavour of government you have at the moment – when it comes to the spirits and hospitality industries, there’s a stench of incompetence. In Scotland we have the incredibly public failure of the DRS scheme, which, as a result, has wasted millions of pounds of taxpayers’ money. But don’t be fooled – it really is no better, south of the border. Westminster will raise you a cock up, in the form of the increased duty rates.
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The government claims new proposals to enable businesses to ‘blend’ and ‘transform’ bulk wine on UK turf will ‘put a rocket’ under UK trade, by allowing businesses the flexibility to blend across countries of origin – though some say this will sound death knell for wines of provenance.
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With just one month till the government’s alcohol tax hikes are effective, the Wine and Spirits Trade Association (WSTA) has reiterated why the “crippling” duty increases should be scrapped.
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Industry chiefs have expressed a modicum of optimism about potential changes to the current plans for the new duty escalator, which could possibly avoid plunging businesses into a tangle of red tape – if only the government continues (or maybe begins) to listen to reason.
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A snap survey by UKHospitality reveals the staggering costs the industry faces on the eve of the new Energy Bill Discount Scheme, which will reduce government support to businesses.
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Luvians manager Archie McDiarmid fears for the future of the alcohol industry in Scotland if government proposals go ahead
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A Gateway Review into the already pushed back Deposit Return Scheme (DRS) for Scotland has concluded that the scheme won’t be fit to launch by August 2023.
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I like to think I’m a man with common sense. Yet, when I look at the stifling, strangling system of regulations we face as an industry in the UK, I see absolutely zero of it.
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The industry has welcomed the news that government will expand its help for businesses with their energy bills, with subsidies set to cover contracts going back to December 2021.
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On Sunday, October 2, prime minister Liz Truss announced that red tape would be cut for thousands of growing businesses.
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Mounting pressure is being placed on the government to ease the ‘financial fragility’ of the hospitality sector during its upcoming review of business rates, as businesses continue to suffer rising supply chain costs and runaway inflation.
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