Majestic Wine has blamed Rachel Reeves and her tax policies for its profit almost slashing in half during its latest financial year.
The Watford-based business said the “economic environment became more challenging” during the 12 months to 31 March, 2025, especially after the general election and the Chancellor’s first Budget.
The chain added that these led to a “more fragile consumer confidence” due to cost-of-living concerns, and “uncertainty” over tax policies and higher mortgage rates.
Majestic Wine also called out the increases in the National Minimum Wage and the “new and highly complex” alcohol duty regime.
The comments have been included in new accounts filed with Companies House for the firm which show its pre-tax profit was cut from £14.3m to £7.7m in the year.
Its revenue edged up from £385.4m to £386.2m over the same period.
Majestic Wine added that its results were also impacted by Easter falling outside its financial year while “unseasonal cost and wet weather” in the Spring and Summer affected bulk party and rosé sales.
Majestic Wine hits out at tax rises
A statement signed off by the board said: “The economic environment became more challenging during the year especially following the new government election of July 2024 and its Budget in October 2024.
“This all contributed to a more fragile consumer confidence, impacted by cost-of-living concerns and uncertainty over the new government’s tax policy and elevated mortgage rates, resulting in pressure on disposable income.
“Majestic saw the impact also including increases in National Minimum Wage and the introduction of the new and highly complex alcohol duty regime with additional IT cost investment to implement.
“The new duty regime was on top of the larges duty increase in 50 years implemented in August 2023 adding further inflationary pressures to the alcohol sector.”
Majestic Wine is owned by Fortress Investment Group whose portfolio also includes Punch Pubs and Poundstretcher.