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, according to a survey conducted by Survation and the UK Spirits Alliance (UKSA), which represents over 300 distilleries and hospitality establishments. The survey reveals a worsening situation compared to the previous year, where only 25% of landlords reported supplier closures.
Distillers are raising alarms, stating that the spirits industry is facing severe difficulties and are calling on the Chancellor to consider halting excise duty increases in the upcoming Budget. This plea comes after a 10.1% rise in duty imposed by the Tories in 2023, following a 3.65% increase announced by Chancellor Rachel Reeves in the previous year’s Budget.
The campaign to support British pubs, led by the Mirror, is gaining momentum as many establishments struggle to survive amidst escalating expenses. Jordan Morris, Co-founder of Abingdon Distillery in Oxford, emphasized the urgent need for the Treasury to take action: “The freeze on excise duty is crucial to establishing a fairer and sustainable system that acknowledges the cultural and economic contributions of distillers to the UK hospitality sector.”
Natalie Hall, Director at York Gin, criticized the government’s decision to favor beer and cider producers while imposing higher taxes on other products, damaging pubs and alienating consumers who enjoy cocktails and spirits. She urged the Chancellor to reverse these harmful measures through a complete freeze on duty, enabling the industry to flourish, innovate, and drive economic growth.
In response, a Treasury spokesperson highlighted the importance of distilleries to the economy and outlined various 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.