It’s far from being the biggest contributor to the misery inflicted on us by the Tories over the past 13 years. All the same, there’s something cruel about the timing of the latest government-sponsored penalisation of one of life’s simple pleasures: a huge increase in wine duty rates that comes into force during the steepest decline in living standards since the 1950s.
The hike, which will see 44p added to most bottles of still wine from 1 August – extra vindictiveness points for landing in the middle of the school holidays – is the consequence of an inflation-indexed rise in duty and the effects of the application of a new system of alcohol taxation based on alcoholic strength.
The latter was described as the biggest overhaul of wine duty in 140 years when it was announced by then-Chancellor Rishi Sunak in October 2021. It is supposed to make things simpler for producers, retailers and consumers by linking wine duty to alcoholic strength, with each 0.5% rise in ABV adding 9.9p in duty per 75cl.
In some ways, this simplification is no bad thing. Lovers of sparkling wine will benefit, since, in a rare sensible move, the government has got rid of the punitive premium on fizz, putting its duty rate at the same level as still wine. That means sparkling duty will actually come down, by 7%, or 19p, to £2.67 per 75cl bottle.
This new system comes into force in phases, with wines between 11.5% and 14.5% ABV taxed as if they were 12.5% until February 2025, before taking their place on the 0.5% sliding scale. For the next 18 months, many producers will be trying to get their wines at 11% so that they don’t jump up to the next bracket of duty, with the wine trade concerned about potentially dramatic effects on quality as well as price. The duty rise may exacerbate existing tendencies at the sharp end of the business, which is forever looking at ways to bring down costs (higher yields in the vineyards, smaller margins for producers, seeking out distressed stock, buying in ever-greater bulk) to meet the price points retailers demand. But the reward of lower duty for lower ABV may also have the effect of encouraging producers to reduce ABV, particularly at the lower end of the price scale.
There are two main ways of doing this, but neither is conducive to quality, since they involve either picking before grapes are properly ripe (leading to leaner, meaner wines) or picking at the normal time but stopping the fermentation before all the sugar has been turned into alcohol (leading to sweeter wines).
Which leaves us wine punters with the following choices: drink sweeter, drink meaner, drink fizzier, drink less, or drink and pay up.
Six wines on the right side of duty changes
M&S Classics Vinho Verde
Portugal 2022 (£8.50, Marks & Spencer, Ocado)
As the name suggests, this is a classic take on the summery northern Portuguese white wine, with typically low (10%) alcohol and delicious citrus and tropical refreshment factor and, at 7g of sugar per litre, not too sweet.
Champteloup Rosé d’Anjou
Loire, France 2022 (£8.99, Waitrose)
Candied-berry rosés from Anjou in the Loire such as this are traditionally sweeter and lighter (11% in this case) than the pinks of Provence. A fine bet for summer strawberry desserts and the gentler end of South Asian spice.
Tesco Finest Mosel Steep Slopes Riesling
Mosel, Germany 2022 (£7, Tesco)
Another style that often comes with a subtle cushion of sugar to offset the naturally steely acidity of the Riesling grape grown on the titular slopes of the Mosel. This is just off-dry, zingy and tangy.
Denbies Flint Valley
Surrey, England NV (£9.99. Waitrose)
English wine grapes are lower in sugar than those grown further south, which means naturally lighter wines. This fragrant 11% ABV blend is floral, gently pear-juicy, and piercingly fresh, crisp and dry.
Sainsbury’s Taste the Difference Conegliano Prosecco
Italy NV (£10, Sainsbury’s)
With sparkling wine duty now falling into line with still wine duty, and with ABVs consistently around 11% (or 10.5% in the case of this textbook, pear-and-cream-soda example), prosecco at least should stay good value come August.
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Asquith Gardens English Sparkling Brut
England NV (£18, Asda)
Another sparkler that is relatively low in alcohol (11.5% here) and benefiting from the fizz duty drop, English fizz continues to impress, and this is excellent value for a crisply refreshing combo of Cox’s apple and butter biscuit.
