Landlords are expressing concern 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, according to a survey conducted by Survation and the UK Spirits Alliance (UKSA), representing more than 300 distillers and hospitality establishments. The survey results indicate a worsening situation compared to the previous year, where only 25% of landlords reported supplier closures.
Distillers are raising alarms about the state of the spirits industry, describing it as “on its knees,” and are calling on the Chancellor to consider implementing a freeze on excise duty in the upcoming Budget. This plea follows a 10.1% increase in duty by the Conservative party in 2023, with a further 3.65% rise announced by Chancellor Rachel Reeves in the previous year’s Budget.
Amidst rising costs that are challenging many pubs in the UK, the Mirror is running a campaign to support these establishments. Jordan Morris, Co-founder of Abingdon Distillery in Oxford, emphasized the importance of government support for the spirits industry, advocating for a freeze on duty to ensure a fair and sustainable system that recognizes the sector’s cultural and economic contributions.
Natalie Hall, Director at York Gin, criticized the government’s tax policies, highlighting the negative impact on pubs and consumers who enjoy spirits products. She urged the Chancellor to reverse the tax hikes and implement a freeze to support both pubs and spirits producers, fostering innovation and economic growth in the industry.
In response, a Treasury spokesperson emphasized the significance of distilleries in the UK economy, mentioning 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 delivered by Ms. Reeves on November 26.