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), representing over 300 distillers and hospitality establishments. This marks a deterioration from the previous year, where 25% of landlords reported supplier closures.
Distillers are highlighting 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 10.1% duty increase by the Tories in 2023. Last year, Chancellor Rachel Reeves announced a 3.65% rise in the Budget.
The Mirror is leading a campaign to support British pubs facing financial challenges due to escalating expenses. Jordan Morris, Co-founder of Abingdon Distillery in Oxford, emphasized the urgent need for support, stating that a duty freeze is crucial to sustain the spirits industry’s cultural and economic contributions to the hospitality sector.
Natalie Hall, Director at York Gin, criticized the government for favoring beer and cider makers over other products, causing harm to pubs, bars, and consumers who enjoy a variety of beverages. Hall urged the Chancellor to reverse the tax hikes and implement a freeze to bolster the industry’s growth and innovation.
In response, a Treasury spokesperson emphasized the importance of distilleries to the economy and outlined various measures to support their success, such as eliminating export duty, reducing licensing fees, lowering tariffs, and capping corporation tax. The spokesperson refrained from commenting on the upcoming Budget, to be presented by Ms. Reeves on November 26.