On 1 February, the Government’s 3.65% increase in excise duty, announced in the Autumn budget, comes into effect, affecting distillers, hospitality and consumers.
Over the last decade hundreds of entrepreneurs have started innovative distilleries producing high quality, sustainable British products for pubs, supermarkets and sold around the world.
But instead of celebrating this success story, successive Governments have singled the sector out for crushing tax rises, whilst keeping the cost of draught beer down.
The 3.65% rise follows a 10.1% increase imposed by the previous Conservative Government in 2023 and 70% of a bottle of British gin is now taken in tax.
The UK Spirits Alliance has written to the Chancellor warning that the latest tax hike will bring the curtain down on a golden age in which the sector boomed, consumers rediscovered quality British spirits and pubs and bars embraced new drinks and customers.
Distillers up and down the country have shared their reaction to this devastating increase.
Kathy Caton MBE, Founder & MD of Brighton Gin said:
“Brilliant British entrepreneurs who, through guts and graft, have created businesses producing world-beating products that consumers love are being seriously let down by this government, and the ones before it.
“Instead of celebrating a British business success story, successive Chancellors have chipped away at the spirits sector and the 1 February tax increase could be the final nail in the coffin for many.
“For many distillers and their staff this extra burden may be the end, seeing the closure of great local and community businesses that have provided employment – and ironically seeing lower contributions to the Treasury”
Antonia Griffin, Director of Somerset Spirits reflected:
“We cannot understand why the duty has increased again so soon after being hiked up. For smaller distillers, this duty hike could mean having to close and put employees out of work to make ends meet.
Harnessing and nurturing of our British industry to become a self-sustaining country is our only way forward and any further barriers imposed by our own government will be the death of our economy.”
Richard Longworth, Owner of Skegness Distillery said:
“This latest tax burden on distillers will leave a nasty taste without a growth chaser.
As a businessman I understand that sometimes, tax rises are necessary but this punitive increase in spirits duty doesn’t appear to be part of a coherent plan for growth and will certainly threaten failure for many.
We need more than just tax raises; we need a vision and solid plan for prosperity. Supporting businesses such as local distillers who invest and support the economy would be a really good place to start.”