The recent increase in excise duty on spirits takes effect today, raising concerns among distillers who describe the industry as already struggling. Braden Saunders, co-founder of Doghouse Distillery in London’s Battersea, highlights the severe challenges facing many businesses in the sector.
Saunders states, ‘The spirits industry has faced heavy taxation from successive governments, leaving it on its knees. Spirits and cocktails remain essential to the profitability of venues, with a strong spirits selection often keeping operations afloat.’
Industry Leaders Voice Alarm
Greville Richards, director of Saint Sithney Distillery in Cornwall, criticizes the policy’s impact on pubs. He notes, ‘While the government aims to support pubs, this move undermines the products that drive their profits. UK spirits already endure some of Europe’s highest excise duties, disadvantaging distillers domestically and internationally.’
The duty rise, announced by Chancellor Rachel Reeves at 3.66% in her latest budget, prompts warnings from lawmakers. Joe Robertson, Conservative MP for Isle of Wight East and member of the all-party parliamentary group on UK spirits, cautions that the change will harm pubs, distillers, and consumers. He adds, ‘Distillers sustain communities through jobs, innovation, and export potential. They require stability to expand, yet mounting pressures threaten pubs significantly.’
The UK Spirits Alliance urges the chancellor to prioritize growth in the upcoming duty review. Carolyn Harris, Labour MP and chair of the all-party group, points out the broader effects, saying, ‘This additional hike burdens those enjoying a drink after work. Pub owners report spirits as key profit drivers, exacerbating their current challenges.’
Government Defends Fiscal Measures
A HM Treasury spokesperson justifies the increase, emphasizing its role in public funding. The spokesperson explains, ‘This supports rebuilding essential services like schools and the NHS, providing better opportunities for children and reducing waiting times. Alcohol duties help maintain fair public finances that fund daily services.’
