Since 2008, the previous government implemented a policy of increasing the annual tax on alcoholic beverages in the UK by 2% above inflation under the banner of promoting "responsible drinking."
The Chief Executive of the Wine and Spirit Trade Association (WSTA) stated that this is excellent news.
However, wine drinkers have mixed feelings about the new policy, as the wine tax continues to rise in line with inflation, approximately 2%, while beer enjoys a 1 penny per pint tax reduction, and the spirits tax remains unchanged.
WSTA data shows that since 2008, the UK wine tax has increased by 50%, meaning that more than half of the cost of each bottle of wine goes to the treasury.
Industry insiders still welcome the new policy. Master of Wine Jancis Robinson tweeted that she is pleased to see the abolition of the UK wine escalator tax.
