Landlords are expressing concern about the challenges faced by whisky and gin manufacturers, 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 by Survation and the UK Spirits Alliance (UKSA). The survey results indicate a worsening situation compared to the previous year when 25% of landlords reported supplier closures.
Distillers are raising alarm bells, stating that the spirits industry is facing significant difficulties and calling on the Chancellor to consider halting excise duty increases in the upcoming Budget. The industry previously saw a 10.1% duty hike in 2023, following a 3.65% rise announced by Chancellor Rachel Reeves in the previous year.
Amidst these challenges, the Mirror is running a campaign to support British pubs struggling with escalating costs. Jordan Morris, Co-founder of Abingdon Distillery in Oxford, emphasized the urgent need for government support, advocating for a freeze on excise duty to ensure a fair and sustainable system that recognizes the value distillers bring to the hospitality sector.
Natalie Hall, Director at York Gin, criticized the government for favoring beer and cider makers over other alcohol producers, which she believes has negatively impacted pubs and consumers who enjoy spirits. Hall urged the Chancellor to reverse the tax increases and implement a freeze to support the industry’s growth and innovation.
In response, a spokesperson from the Treasury highlighted the importance of distilleries to the UK economy, mentioning various measures aimed at supporting their success, such as no export duty, reduced licensing fees, lower tariffs, and a cap on corporation tax. The spokesperson refrained from commenting on the upcoming Budget, scheduled to be presented by Ms. Reeves on November 26.