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. The latest survey conducted by Survation and the UK Spirits Alliance (UKSA), representing over 300 distilleries and hospitality establishments, indicates a worsening situation compared to the previous 12 months when only 25% of landlords reported supplier closures.
Distillers are raising alarm bells, stating that the spirits industry is in a critical state and calling on the Chancellor to consider a freeze on excise duty in the upcoming Budget. This plea comes after a 10.1% increase in duty imposed by the Tories in 2023, following a 3.65% rise announced by Chancellor Rachel Reeves in the previous year’s Budget.
The Mirror is actively campaigning to support British pubs struggling to survive amid escalating expenses. Jordan Morris, Co-founder of Abingdon Distillery in Oxford, emphasized the urgent need for assistance, highlighting the significant cultural and economic contributions of distillers to the UK hospitality sector.
Natalie Hall, Director at York Gin, criticized the government’s tax policies, suggesting that favoring beer and cider makers while raising taxes on other products has harmed pubs, bars, and consumers who enjoy spirits. She urged the Chancellor to reverse the detrimental tax hikes and implement a freeze to support the industry’s growth and innovation.
In response, a Treasury spokesperson emphasized the importance of distilleries to the UK economy, mentioning measures such as no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax to facilitate their success. However, the spokesperson refrained from commenting on the Budget, which will be presented by Ms. Reeves on November 26.
