Wine Society Braces for Storm After Budget Tax Raid

The world’s oldest co-operative wine club, The Wine Society, has been forced to implement a hiring freeze and cancel investment plans following Rachel Reeves’s Budget tax raid. The society, which has around 180,000 members across the UK, is facing an extra £5.5 million in taxes this year due to increases in National Insurance (NI) contributions, higher business rates, higher alcohol duty, and a net zero “glass tax” coming into force later this year.

Steve Finlan, chief executive of the wine club, said the organisation would be forced to raise the price of some bottles following the Chancellor’s Budget, as well as putting growth plans on hold. Mr Finlan said: “We now have a recruitment freeze in place. We have slashed investment in 2025. We are having a pay review of 3pc in February because it is the right thing to do as a responsible employer. This will cost a further £500,000. Many will end up paying less or abandoning a pay review altogether given the cost burdens imposed on wine businesses.”

The Wine Society will hold prices on its own label wine, but other prices will have to go up, by around 2pc initially and then rising to 4pc when the full budget costs come into play. Mr Finlan said: “We will hold prices on our own label wine, but other prices will have to go up, by around 2pc initially and then rising to 4pc when the full budget costs come into play.”

The Wine Society is the world’s oldest co-operative wine club. Members pay a one-off fee to become a lifetime shareholder in the society and get access to wine at lower prices thanks to its non-profit model. Mr Finlan said the Government was squarely to blame for the society’s troubles. He said: “There is a complete lack of joined-up thinking by the Government to understand the collective impact of changes to be introduced in 2025. The statement that this was a Budget for growth and investment is simply not true and, in the context of the wine industry is laughable.”

Drinks companies face a succession of cost increases in 2025. As well as the rise in NI contributions enacted by the Chancellor in her October Budget, alcohol duty rose by 3.65pc this month. This followed a 10.1pc rise pushed through by Rishi Sunak’s government in 2023. Additionally, the industry will also be bound by a new Extended Producer Responsibility (EPR) tax from October. The new levy will see businesses charged per tonne of packaging materials used, including glass, as the UK pushes towards net zero. Critics in the drinks industry have branded it a “glass tax”.

Mr Finlan said: “We expect prices in the industry to go up by more than [what The Wine Society plans] and will be surprised if some businesses in both the off trade [retail] and the on-trade [hospitality] will be able to continue at worst, or without elements of re-structuring at best.”

Pub company Young’s has warned the increase in NI contributions alone will add as much as 20p to the price of a £6.30 pint sold in London, while JD Wetherspoon has said it faces an extra £60m in costs. Kathy Caton, founder of Brighton Gin, said: “Brilliant British entrepreneurs who, through guts and graft, have created businesses producing world-beating products that consumers love are being seriously let down by this government, and the ones before it. Instead of celebrating a British business success story, successive Chancellors have chipped away at the spirits sector.”



The Wine Society’s decision to freeze hiring and cancel investment plans is a clear indication of the financial burden imposed by the Budget tax raid. The society’s concerns about the government’s lack of joined-up thinking and the collective impact of changes in 2025 reflect the broader challenges faced by the wine and spirits industry in the UK. The industry is grappling with a series of cost increases that are making it difficult for businesses to operate and grow. The government’s policies are creating a perfect storm of financial pressures that could lead to job losses, business closures, and reduced investment in the sector.



In conclusion, the Wine Society’s decision to freeze hiring and cancel investment plans is a direct response to the financial burden imposed by the Budget tax raid. The society’s concerns about the government’s lack of joined-up thinking and the collective impact of changes in 2025 reflect the broader challenges faced by the wine and spirits industry in the UK. The industry is grappling with a series of cost increases that are making it difficult for businesses to operate and grow. The government’s policies are creating a perfect storm of financial pressures that could lead to job losses, business closures, and reduced investment in the sector.