Landlords are expressing concerns about the challenges faced by whisky and gin producers, with more than a third (38%) of pub owners reporting that a supplier has gone out of business in the past year. A survey conducted by Survation and the UK Spirits Alliance, representing over 300 distilleries and hospitality establishments, indicates a worsening situation compared to the previous year.
Last year, 25% of landlords reported supplier closures within the same timeframe. Distillers are issuing warnings that the spirits industry is in a critical state and are calling on the Chancellor to consider implementing a freeze on excise duty in the upcoming Budget, following a 10.1% duty increase by the Tories in 2023.
The spirits industry is facing significant challenges, prompting the Mirror’s campaign to support British pubs struggling with escalating expenses. Jordan Morris, Co-founder of Abingdon Distillery in Oxford, emphasized the urgent need for industry support, advocating for a freeze on duty to create a fairer system that recognizes the cultural and economic contributions of distillers to the hospitality sector.
Natalie Hall, Director at York Gin, criticized the government’s tax policies, which she believes have negatively impacted pubs, bars, and consumers who enjoy spirits. She urged the Chancellor to reverse the tax hikes and implement a freeze to benefit the industry’s innovation and economic growth.
In response, a Treasury spokesperson highlighted the importance of distilleries to the UK economy, mentioning initiatives such as no export duty, reduced licensing fees, lower tariffs, and a cap on corporation tax to support industry growth. However, the spokesperson refrained from commenting on the Budget, scheduled to be delivered by Ms. Reeves on November 26.