This month, we talk with the Wine & Spirit Trade Association (WSTA) to explore the regulatory landscape shaping the future of wines and spirits in the UK market. With thanks to Samuel Honey, Head of Government Affairs (photo), and supported by Kelly Moss, Associate Director of Compliance & Regulation, and Nicole Alexandrou, Compliance Officer, in this feature, we examine key topics shaping the conversation.
From the current UK mandatory requirements for labelling wines and spirits, and differences between EU and UK rules, to the Government’s 10-Year Health Plan, and Autumn Budget. Amidst industry struggles, the WSTA is engaging the Government to make a robust case on revenue terms, with a clear message that a further increase to duty could fail to deliver anticipated increases in revenue, following two duty increases in 18 months, EPR fees, and an unstable international trading environment. Furthermore, as the Welsh Government pushes forward with its contentious deposit return scheme, concerns mount over the potential barriers it creates for intra-UK trade, sparking a heated debate on the feasibility of a nationwide glass reuse initiative.
The WSTA plays a pivotal role in advocating for a regulatory framework that protects consumers while supporting a resilient and competitive industry.
What are the current UK mandatory requirements for labelling wines and spirits?
In the UK, wines and spirits must display mandatory information to ensure that consumers have all the information they need to make an informed purchasing decision and to enable them to consume the products safely. This information also helps with traceability of products should issues arise. These mandatory details include:
- The product name, e.g. Wine, Vodka;
- Alcoholic strength (ABV);
- Nominal Volume (e.g. 75cl);
- Country of origin/provenance (for wine only);
- Name and address of the business that accepts responsibility for the food while on the UK market;
- Allergen declaration (for example, “contains sulphites”);
- Lot number.
The priority is to find solutions to enable a single label that is compliant with the UK and EU markets.
What are the key differences between EU and UK labelling rules for wines and spirits?
The UK and EU currently share many similar labelling requirements, but since leaving the EU, there have been some deviations, such as mandatory ingredient and nutrition labelling for wines produced in and sold in the EU. Provision of updated mandatory
labelling information was referenced in the UK Government’s recent 10-year health plan, but industry is awaiting a consultation announcement.
For spirits, there have been very minor deviations, despite the EU now following different labelling regulations.
For the industry, the priority is to find solutions to enable a single label that is compliant with both the UK and EU markets.
The alcohol industry has taken positive steps to promote responsible drinking and clear communication.
How has the industry developed voluntary best practices?
The alcohol industry has taken positive steps beyond legal requirements to promote responsible drinking and clear communication. Guidance from the Portman Group’s Code of Practice and Drinkaware is widely followed, although neither are legal obligations.
The Portman Group recommends including key elements on labels such as the pregnancy logo, unit information per container (and serving where possible), the Chief Medical Officers’ (CMO) health warning, and reference to Drinkaware.
The Portman Group also publish a Code of Practice on the Naming, Packaging and Promotion of Alcoholic Drinks and issues independent Code Judgements to assess compliance with its guidance. Although not a mandatory requirement, the Code is respected across the sector and supports responsible marketing, packaging, and labelling practices.
Following these voluntary principles helps maintain public trust and demonstrates the industry’s commitment to self-regulation and high standards.
What does the 10-Year Health Plan mean for labelling, and what other changes could be on the horizon?
The Government’s 10-Year Health Plan focuses on transforming the NHS. There is limited reference to alcohol, and where there are, the focus is on addressing harmful consumption to ensure people have the information they need to make healthier choices on alcohol.
The Government have committed to exploring introducing new mandatory nutritional and health warning information, to consult again on increasing the alcohol-free threshold to 0.5% ABV (after consultation by the previous Government in 2023), and to equate the regulatory sales regime for low and no products with that for alcohol, including a ban on No/Low sales to under-18s. The Government is yet to launch a public consultation on the proposed changes, as the industry considers next steps.
Looking ahead, consistency in regulatory requirements between the EU and UK is important. A single label solution that is compliant for both markets reduces financial burdens on businesses, minimises disruption for importers, and creates consistency for consumers. Discussions over future labelling changes should also look to the benefits of electronic delivery – offering potential flexibilities including updating content in-between labelling cycles and tailoring available information (and language) to specific geographical location. Discussions over electronic delivery must consider accessibility for a wide range of consumers.
The WSTA is engaging the Government to make a robust case on revenue terms.
What should industry be looking out for at the Autumn Budget? (Duty and RPI indexing, on vs. off trade, new business rates system, £500k RV and issues for warehousing, OBR forecast)
Following the re-design of the excise duty system in 2023, it remains stated Government policy to increase duty by RPI annually (although Government can choose to do differently – as with freezes at the Autumn Budget 2023 and Spring Budget 2024). The Government faces a reported shortfall of £30 billion ahead of the Budget on 26th November, and with the Chancellor clear that a wide range of tax measures and spending cuts are under consideration, the industry must be sensitive to the risks of another increase in duty.
Amidst mounting regulatory pressures with 2 increases in 18 months, the arrival of EPR fees, and an unstable international trading climate, the WSTA is engaging the Government ahead of the Autumn Budget to make a robust case for a freeze in duty. This is driven by decreasing Government duty receipts in light of February’s increase, as sales volumes fall.
In the budget, the Government will also confirm the final multipliers for the new business rates system, as in effect from the start of the financial year 2026/27.
Government has pledged to introduce permanently lower multipliers for the retail and hospitality sectors, having already cut business rates relief from 75% to 40% at the Autumn Budget 2024. WSTA is re-enforcing calls for maximum support for these sectors, while also asking the Government to look again at the methodology for a new higher rate for all properties £500,000+ RV (rateable value), concerned that this may disproportionately impact supply chain businesses with a single, or a small number of, primary UK warehouse(s).
Any changes to alcohol duty rates would not be implemented until 1st February 2026, as per Government policy. Business rates multipliers would be chargeable from the beginning of the 2026/27 financial year in April 2026.
Looking at the first six months of the FY vs. the same period in 24/25, receipts from alcohol duty are nearly £300 million lower.
Given the fiscal pressures facing the Government, what is the current state of revenue from alcohol duty?
Despite a 3.6% increase in the headline rate of duty on 1st February (and increases of up to 20% for some wines as a result of simultaneously withdrawing the temporary easement), Government revenue from alcohol duty is decreasing year-on-year. When looking at the first six months of the financial year (FY) (vs. the same period in 2024-25), overall receipts from alcohol duty are nearly £300 million lower. If receipts continue to decline at this rate for the rest of the financial year, Government revenue from alcohol duty will be nearly £1 billion lower for FY 2025/26 compared to the Office for Budget Responsibility’s forecast in March 2025. In a sample forecast review exercise in July, the OBR conceded that they had overestimated excise duty revenue for FY 2023-24 in multiple forecasts.
Significant barriers to intra-UK trade posed by including glass in the Welsh scheme
What is the latest on Deposit Return Schemes (DRS), and the proposed glass-in scheme in Wales?
The Welsh Government has launched a consultation on their DRS scheme and glass re-use, which closes in early November. The WSTA continues to engage with various audiences in the Welsh Government and UK Government to raise concerns over the significant barriers to intra-UK trade posed by including glass in the Welsh scheme and question the evidence base and commercial feasibility of a national glass re-use scheme. The Welsh Government has already notified the World Trade Organisation (WTO) of their draft DRS regulations. They are expected to be tabled in the Welsh Parliament in the coming months, with the aim of passing them into law before next May’s elections.