World's Oldest Wine Club Faces Financial Woes Amid Government Tax Burden
The Wine Society, the world's longest-standing co-operative wine club, has implemented a hiring freeze and halted investment plans due to a projected £5.5 million increase in costs resulting from the UK government's recent Budget.
The society, with approximately 180,000 members, anticipates higher taxes due to increased National Insurance contributions, business rates, alcohol duty, and the upcoming "glass tax." These additional expenses have forced the organization to pause growth plans and potentially raise prices on selected bottles.
Steve Finlan, the Wine Society's chief executive, criticized the government's policies, stating, "There is a complete lack of joined-up thinking...The statement that this was a Budget for growth and investment is simply not true."
The drinks industry faces a series of cost hikes in 2025, including a rise in National Insurance contributions, a 3.65% alcohol duty increase, and a new Extended Producer Responsibility (EPR) tax on packaging materials, including glass. Industry experts have labeled the latter a "glass tax."
Finlan predicts that industry prices will increase significantly and that some businesses in both retail and hospitality sectors may struggle to continue operating or may need to restructure. This has prompted concerns from other industry leaders, including representatives from Young's, JD Wetherspoon, and the Wine & Spirit Trade Association.
The Treasury has defended its actions by pointing to reductions in alcohol duty on draft products and support for small breweries. However, industry representatives argue that these measures are insufficient to offset the overall tax burden.