Distillers warned the spirits industry is ‘on its knees’ and urged Chancellor Rachel Reeves to consider imposing a new freeze on excise duty in the upcoming Budget
Landlords have sounded the alarm over the strains on whisky and gin-makers as more than a third (38%) of pub bosses said one of their suppliers has gone bust in the last year.
The findings from Survation and the UK Spirits Alliance (UKSA), which represents more than 300 distillers and hospitality businesses, show the situation has got worse in the last 12 months.
The same survey last year found 25% of landlords said a supplier had closed in the last 12 months.
Distillers warned the spirits industry is “on its knees” and urged the Chancellor to consider a freeze on excise duty in the upcoming Budget.
It comes after the Tories hiked the duty by 10.1% in 2023.
Last year, Chancellor Rachel Reeves announced a further 3.65% rise in the Budget.
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The Mirror is campaigning to save Britain’s pubs, as many struggle to stay afloat due to rising costs.
Jordan Morris, Co-founder of Abingdon Distillery, Oxford said: “This is a clear signal to the Treasury – the spirits industry is on its knees and in vital need of support.
“A freeze is the first step to a fairer and more sustainable duty system that recognises the cultural and economic value distillers bring to the UK hospitality sector.”
Natalie Hall, Director at York Gin, said: “By choosing to support only beer and cider makers while raising taxes on other products, the Government damaged our pubs and bars and isolated those consumers who choose to enjoy a cocktail, gin and tonic or spritz.
“The Chancellor can back pubs, and the fantastic spirits makers that supply them, by reversing the damaging hikes with a complete freeze, which would have a huge impact on our industry and allow it to continue to innovate and drive economic growth.”
A Treasury spokesperson said: “Our distilleries are vital to Britain’s economy, so we’re making it easier for them to thrive: no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax.”
The spokesperson declined to comment on the Budget, which will be delivered by Ms Reeves on November 26.