Landlords are expressing concern about the challenges faced by whisky and gin producers, with more than a third (38%) of pub owners reporting that one of their suppliers has gone out of business in the past year. The latest survey conducted by Survation and the UK Spirits Alliance (UKSA), representing over 300 distilleries and hospitality establishments, reveals a worsening situation compared to the previous year.
Distillers have issued a plea for support, labeling the spirits industry as “struggling” and calling on the Chancellor to consider a freeze on excise duty in the upcoming Budget, following a 10.1% increase in duty by the Tories in 2023. Last year, Chancellor Rachel Reeves announced an additional 3.65% rise in the Budget.
The ongoing campaign by the Mirror to safeguard British pubs highlights the challenges many are facing due to escalating expenses. Jordan Morris, Co-founder of Abingdon Distillery, Oxford, emphasized the urgent need for assistance, stating, “A freeze is crucial to establish a fairer duty system recognizing the contributions of distillers to the UK hospitality sector.”
Natalie Hall, Director at York Gin, criticized the government for favoring beer and cider makers while imposing higher taxes on other products, adversely affecting pubs and consumers who prefer spirits. She urged the Chancellor to reverse the tax hikes and implement a complete freeze to support the industry’s growth and innovation.
A Treasury spokesperson acknowledged the importance of distilleries to the economy, highlighting initiatives to facilitate their success, such as eliminating export duty, reducing licensing fees, lowering tariffs, and capping corporation tax. However, the spokesperson refrained from commenting on the Budget, scheduled for delivery by Ms. Reeves on November 26.