UK Budget leaves wine sector sour

UK Budget leaves wine sector sour
By Chris Mercer

The UK wine and spirits industry has said it is 'deeply disappointed' by the UK chancellor's plans to raise duty tax on wine, announced in his 2007 Budget Speech Wednesday.

Tax on sparkling wine will rise by seven pence per bottle, and five pence per bottle on still wine, chancellor Gordon Brown said.

The move sparked uproar in the drinks industry, which has complained UK tax on wine is already high and that the rise may hit incomes in a market where margins are increasingly tight.

Jeremy Beadles, head of the Wine and Spirit Trade Association (WSTA), described the announcement as a "startling U-turn", adding he was "shocked and deeply disappointed" at the hike on sparkling wine.

"This will have a serious impact particularly on the burgeoning English and Welsh wine market."

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