Award-winning Burnley distillery Batch hits out at 'unfair' alcohol duty rise

The owners of an award-winning Burnley distillery have urged the Government to rethink its latest alcohol duty increase, warning that small independent producers are being unfairly penalised.

Jamie Butterfield, co-owner of Batch Distillery, has written to Burnley MP Oliver Ryan calling on him to press the Chancellor for a U-turn following the Autumn Budget.

Mr Ryan has since responded to the concerns, confirming he has written to the Chancellor on Batch's behalf to call for greater support for small producers of spirits such as gin and whisky.

The Government has announced that alcohol duty will rise in line with inflation from February 1, 2027, adding further pressure to businesses already struggling with rising production and operating costs.

Official Treasury documents confirm a 4.55% increase in duty rates, alongside additional support for certain smaller alcohol producers.

But Jamie believes the changes fail to recognise the challenges facing small craft distilleries, which he argues cannot absorb rising costs as easily as larger manufacturers.

In his letter to Mr Ryan, he said: "I am writing to you on behalf of Batch Distillery. We are deeply concerned by the recent Autumn Budget announcement to increase alcohol duty in line with RPI inflation, and I want to urge you to press the Chancellor for a U-turn on this decision.

"Small craft distilleries like ours do not contribute to alcoholism, public health crises, or obesity.

"By their very nature, our operations are artisanal, producing handcrafted products in small batches, typically using natural, locally-sourced ingredients.

"While larger industrial distilleries may be able to absorb these cost increases, a blanket duty hike hits micro-producers disproportionately hard."

Jamie also questioned why craft spirits producers are excluded from tax relief schemes available to some smaller beer and cider producers.

Under the current system, Small Producer Relief is available for qualifying alcoholic products below 8.5% ABV, meaning conventional-strength gin, vodka, rum and whisky are excluded.

The Budget includes plans to make the relief more generous for eligible products, but those changes will not benefit most traditional spirits.

Jamie said: "Furthermore, this policy creates an unfair double standard within the craft sector.

"Small craft beer and cider producers benefit from Small Producer Relief and Draught Relief, recognising the vital contribution they make to local economies and culture.

"Yet craft spirits distillers are completely excluded from these schemes, simply because of our ABV level.

"We are all part of the same vibrant craft community; why should craft spirits be penalised and treated differently?"

Jamie and his wife Sharlene took over Batch Distillery earlier this year, having been loyal customers of the business for several years.

The company, which celebrates its 15th anniversary this month, began life in a basement near Burnley's Talbot Hotel and went on to establish an international reputation for its spirits.

Its award-winning range has expanded from gin to include vodka, rum and whisky, with its Industrial Strength Gin previously winning double gold at the San Francisco World Spirits Awards.

Since taking over, the couple have spoken openly about the difficulties facing independent businesses, including rising costs and the financial pressures affecting pubs, bars and restaurants.

They have pledged to build on Batch's established reputation while keeping the business firmly rooted in Burnley.

Jamie now fears that further increases in alcohol duty could make it harder for independent producers to compete on price with multinational brands.

He said: "By squeezing small independent producers, this duty rise risks pricing out high-quality, sustainable alternatives and inadvertently driving consumers toward cheaper, mass-produced, poor-quality alcohol, which can have far worse health outcomes."

In his letter, Jamie urged Mr Ryan to champion small distilleries in Parliament and push for the extension of producer support to businesses making higher-strength spirits.

He added: "We urge you to champion our cause in Parliament, support the case for extending small producer support to micro-distilleries, and ask for a U-turn on this damaging duty increase."

Responding to Batch's concerns, Mr Ryan praised the Burnley business and confirmed he had taken up the issue with the Chancellor.

He said: "Batch Distillery are brilliant, an iconic Burnley brand and I'm a fan, got a few bottles at home and would encourage others to get some before Christmas!

"On Alcohol Duty, I understand Jamie's concern. The Duty is rising, as it does every year, by price inflation to keep pace.

"But the problem he highlights of help for small producers being available is an important one, at the moment small producers do get help, but not for high ABV products like gin.

"As the MP for Batch then, I've written to the Chancellor on their behalf, to raise the case for support for small producers, not just of beer and cider, but gin and whiskey too.

"I get it, it's a fair point, and I want to help."

The Government says increasing duty in line with inflation will maintain its value in real terms, while changes to Small Producer Relief are intended to provide additional support to more than 2,000 smaller alcohol producers across the UK.