Landlords are expressing concerns about the challenges faced by whisky and gin producers, with over a third (38%) of pub owners reporting that one of their suppliers has gone out of business in the past year. A survey conducted by Survation and the UK Spirits Alliance, representing more than 300 distilleries and hospitality establishments, indicates a worsening situation compared to the previous year.
Distillers are emphasizing the critical condition of the spirits industry, calling on the Chancellor to consider implementing a freeze on excise duty in the upcoming Budget after a significant 10.1% duty increase by the Tories in 2023. Last year, Chancellor Rachel Reeves announced a further 3.65% rise in the Budget.
The Mirror is leading a campaign to support British pubs, acknowledging the financial pressures they face due to escalating expenses. Industry voices, such as Jordan Morris, Co-founder of Abingdon Distillery, Oxford, are urging the government for support, highlighting the importance of a freeze on duty to preserve the cultural and economic contributions of distillers to the hospitality sector.
Natalie Hall, Director at York Gin, criticized the government for favoring beer and cider makers over other products, leading to negative impacts on pubs, bars, and consumers who enjoy a variety of beverages. She stressed the need for a complete freeze on tax hikes to benefit the industry, promote innovation, and drive economic growth.
In response, a Treasury spokesperson emphasized the significance of distilleries to the UK economy, highlighting measures to support their growth, such as no export duty, reduced licensing fees, lower tariffs, and a cap on corporation tax. However, the spokesperson refrained from commenting on the Budget, which will be presented by Ms. Reeves on November 26.