Landlords are expressing concern about the challenges faced by whisky and gin producers, with over a third (38%) of pub owners reporting the closure of a supplier within the past year. Research conducted by Survation and the UK Spirits Alliance, representing over 300 distilleries and hospitality establishments, reveals a deteriorating situation compared to the previous year.
In the previous survey, 25% of landlords reported supplier closures in the same timeframe. Distillers are cautioning that the spirits industry is in a critical state and are calling on the Chancellor to consider halting excise duty increases in the upcoming Budget, following a 10.1% duty hike by the Tories in 2023.
Rachel Reeves, the Chancellor last year, announced a further 3.65% rise in the Budget. The Mirror is leading a campaign to support British pubs struggling with escalating costs. Jordan Morris, Co-founder of Abingdon Distillery, Oxford, emphasized the urgent need for assistance, stating that a freeze on duty is essential for a fairer system recognizing the value distillers contribute to the hospitality sector.
Natalie Hall, Director at York Gin, criticized the government for favoring beer and cider makers over other products, adversely affecting pubs and consumers who enjoy spirits. She urged the Chancellor to reverse tax hikes and implement a freeze to support the industry’s growth and innovation.
A Treasury spokesperson acknowledged the importance of distilleries to the economy and highlighted measures to facilitate their success, including no export duty, lower licensing fees, reduced tariffs, and a corporation tax cap. However, they refrained from commenting on the upcoming Budget, to be presented by Ms. Reeves on November 26.
