Dorset wine merchant petitions for duty freeze

Published: 16 February, 2012

A prominent Dorset wine merchant has started an e-petition calling on the government to halt the duty escalator, as it is damaging small independents who can't compete with major multiples.

Martin Platts, owner of retail outlet Just Fine Wines and wholesaler Hillside Wines, argues that the alcohol duty increases are leaving independents unable to compete at entry level for sales.

"This leaves the largest wine sales market for the big players," said Platts.

The escalator threatens to deliver a 7.2% increase in March, despite the combined effect of duty and VAT already accounting for three quarters of the average price of a bottle of vodka and half the price of a bottle of wine.

Platts claims that smaller firms are suffering disproportionately because of the tax hikes. "As each annual duty increase is applied every business feels the pain, in an attempt to attract more business and retain existing custom, profit margins are being squeezed.

"In desperation not to lose custom to the supermarkets many businesses are
tempted to source cheaper products offering reduced value for customers, often using more price-driven suppliers providing poor service and inconsistency, in most cases both these routes result in business failure," said Platts.

Earlier this week the WSTA called on the government to freeze the duty escalator in order to allow UK businesses to benefit from the Olympics. Examining alcohol taxaation across Europe shows that visitors to the London Olympics will pay up to 50% more for an average bottle of wine than if the Games were in Paris and triple what they would pay in Madrid.

To view and sign Platts's petition, 'Halt the progress of the excise duty escalator on wines', visit the e-petitions page. Platts is hoping to attract 100,000 signatures, which would make it eligible for debate in the House of Commons.

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