Mixed news for the UK drinks industry in the latest budget. A freeze in the general level of duty on wine, beer and spirits was broadly welcomed - but a huge increase on RTDs, which could put as much as 12p on a standard 275ml bottle, was condemned by the country's Wine and Spirits Association, who described it as a tax on innovation. It also claimed the measure could see manufacturers replacing spirits in the mix with cheaper alternatives, as has been the case in the US. "The Chancellor is taxing British innovation and success with this huge 65% increase in tax on spirit-based coolers. These products compete with beer so putting the duty on a level with spirits is unfair and will backfire. As in several other countries, producers will switch to basing their products on beer or wine rather than spirits, so no revenue will be gained", said WSA director Q. Rappoport.
