A report produced by Ernst & Young to coincide with the launch has shown a cut of 2% would provide a £1.5bn boost to the Treasury.
The trade bodies say increased investment across the industry; greater tax income from corporation tax and VAT; and the benefits of jobs created in pubs, bars, restaurants, shops and the wider supply chain would all boost public finances.
Using the strapline, Small drop, big cheer, the ‘Drop the Duty!’ campaign is calling on all UK consumers to email their MP via the campaign website to urge George Osborne to include the cut in his budget.
To launch the campaign today (15 December), The Punch Tavern in Fleet Street has been transformed into ‘George’s World’ where “everything is done in line with the wishes of Chancellor George Osborne in order to highlight the inequality UK businesses and consumers face”.
Contribution
Miles Beale, chief executive of the Wine and Spirit Trade Association, said: “The wine and spirit sector already makes a significant contribution to the wider hospitality industry and to the British economy. Independent analysis from EY shows that the sector’s economic contribution could be £3.9bn greater if it weren’t for the UK’s sky-high duty rates.
“By cutting the duty on wine and spirits at the next Budget the Chancellor would provide welcome relief for the British public, boost jobs and growth and generate an additional £1.5bn for the public finances.
“It is important that the Chancellor hears this message directly from consumers so I am encouraging all our supporters to make their voice heard by joining the ‘Drop the Duty!’ campaign and emailing their MP."
David Frost, chief executive of the Scotch Whisky Association, said: “If you buy a bottle of Scotch Whisky to celebrate Christmas and New Year, nearly 80% of the average price you pay goes straight to the Government. This is unfair on both consumers and the Scotch Whisky industry. We are calling for George Osborne to do the right thing and cut excise duty by 2% in next year’s Budget.
“New evidence shows that lowering these draconian levels of excise duty would actually boost public finances and the economy, as well as benefit consumers.”