Landlords are expressing concern about the challenges faced by whisky and gin producers, with more than a third of pub owners (38%) reporting that one of their suppliers has gone out of business in the past year. Research conducted by Survation and the UK Spirits Alliance (UKSA), representing over 300 distilleries and hospitality establishments, indicates a worsening situation over the last 12 months compared to the previous year.
Distillers have issued a stark warning, stating that the spirits industry is in a dire state and have called on the Chancellor to consider implementing a freeze on excise duty in the upcoming Budget, following a 10.1% duty increase imposed by the Conservatives in 2023. Chancellor Rachel Reeves had previously announced a further 3.65% rise in the Budget last year.
Amidst rising costs, the Mirror is campaigning to support British pubs that are facing financial challenges. Jordan Morris, Co-founder of Abingdon Distillery in Oxford, emphasized the urgent need for government support, highlighting the importance of a freeze on excise duty to establish a fairer system that recognizes the value added by distillers to the UK hospitality industry.
Natalie Hall, Director at York Gin, criticized the government for favoring beer and cider makers while burdening other product sectors with tax hikes, adversely impacting pubs, bars, and consumers. She called for a complete freeze on duty increases to safeguard the spirits industry, promote innovation, and drive economic growth.
Responding to the concerns raised, a Treasury spokesperson emphasized the significance of distilleries to the UK economy and outlined measures to support their growth, including no export duty, reduced licensing fees, lower tariffs, and a cap on corporation tax. However, the spokesperson refrained from commenting on the upcoming Budget, scheduled to be presented by Ms. Reeves on November 26.