Budget 2012: alcohol duty escalator continues

Published: 21 March, 2012

As expected the Chancellor announced the continuation of the alcohol duty escalator in today's Budget - meaning alcohol duty rises by 2% ahead of inflation.

The Chancellor announced "no further changes" to alcohol duty, meaning the escalator continue apace until 2014. He added that the upcoming alcohol strategy would address "the growing problem of alcohol misuse". It is expected to be announced by Monday.

Oxford Wine Company's managing director Ted Sandbach expressed concern there will be "a polarisation of prices as independents have to absorb costs while multiples exercise muscle to force down prices at source or run crazy promotions to distract customers from the increases".

He added his firm had absorbed other hikes since the beginning of the year and will implement its increase from April 1, and keep them for a calendar year. He said the combination of transport, producer and duty increases was likely to put 50p on an average bottle of wine.

Let us know how you will implement changes to alcohol duty in your businesses. Email harpers.editorial@wrbm.com.

Printer friendly version