North West spirits makers call for a cut to alcohol duty at Spring Budget

Around 80% of the cost of a bottle of spirits in the UK is tax, leading Scotch whisky and gin makers to say the current rate of alcohol duty is “unsustainable” and leading to pub closures.

Ten leading distilleries, including Batch Distillery in Burnley, signed an open letter to Chancellor Jeremy Hunt, and pubs nationally have echoed their sentiments.

The UK Spirits Alliance (UKSA) – which represents over 280 small and independent distilleries across the country and is supported by numerous hospitality venues – has also published its Spring Budget dossier. The group sets out how record levels of duty are hitting consumers and damaging businesses.

In the open letter, 10 spirits-makers – including Batch – warn that despite the freeze on duty announced by the Chancellor at the Autumn Statement, the current level of duty, increased by the highest amount in over 40 years, is unsustainable for not only distillers, but for hospitality venues too.

Phil Whitwell from Batch Distillery said: “We warmly welcomed the freeze to spirits duty put in place at the Autumn Statement, but the current rate of duty remains at an unsustainable level for spirits producers, hospitality venues, and consumers. 

“A cut to duty would support the further growth amongst the UK’s distilling industry, providing a boost to one of our vital sectors for the UK’s economy and culture.

“It would also support a currently struggling hospitality sector, for whom a cut in duty would represent an unnecessary cost slashed. For consumers, the high price of alcohol has kept the cost of a basket of goods too high, for too long.

“For responsible consumers, spirits are a treat as opposed to a vice. The current level of duty has hit the pockets of hardworking people, and it cannot continue.”

With tax on a bottle of spirits already at 80%, the highest in the G7, sky-high duty represents another cost heaped on producers grappling with inflation as their customers struggle with the cost of living.

The document warns that without a cut to duty, there is a risk that these iconic spirits products, such as Scotch whisky and English gin could soon become an unaffordable luxury.