Landlords are expressing concerns about the challenges faced by whisky and gin producers, with a significant 38% of pub owners reporting that a supplier had gone out of business in the past year. A joint study by Survation and the UK Spirits Alliance (UKSA), representing over 300 distilleries and hospitality establishments, reveals a worsening situation compared to the previous year.
The survey conducted last year showed that 25% of landlords had experienced supplier closures within the same timeframe. Distillers have issued a stark warning, stating that the spirits industry is struggling and have called on the Chancellor to consider implementing a freeze on excise duty in the upcoming Budget session, following a 10.1% duty increase by the Tories in 2023.
Rachel Reeves, the Chancellor last year, announced a further 3.65% duty rise in the Budget. The Mirror is actively advocating for the preservation of British pubs, many of which are facing financial challenges due to escalating expenses.
Jordan Morris, Co-founder of Abingdon Distillery, Oxford, emphasized the urgent need for support from the Treasury, highlighting the distressing state of the spirits industry. Natalie Hall, Director at York Gin, criticized the government’s tax policies, suggesting that favoring beer and cider makers while imposing higher taxes on other products has negatively impacted pubs and consumers.
In response to the industry’s concerns, a Treasury spokesperson emphasized the importance of distilleries to the economy and outlined measures to facilitate their growth. However, the spokesperson refrained from commenting on the upcoming Budget, scheduled to be presented by Ms. Reeves on November 26.