Landlords are expressing concern about the challenges faced by whisky and gin producers, with more than a third (38%) of pub managers reporting that one of their suppliers has gone out of business in the past year, according to a survey conducted by Survation and the UK Spirits Alliance (UKSA), representing over 300 distilleries and hospitality establishments.
The survey results indicate a worsening situation compared to the previous year, where only 25% of landlords reported supplier closures. Distillers are emphasizing the critical state of the spirits industry, 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.
Abingdon Distillery’s Co-founder, Jordan Morris, stated that the industry urgently requires support, highlighting the importance of a duty freeze for a sustainable system that acknowledges the value distillers bring to the hospitality sector. Natalie Hall, Director at York Gin, criticized the government for favoring beer and cider makers while imposing tax hikes on other products, negatively impacting pubs, bars, and consumers.
In response, a Treasury spokesperson outlined initiatives to support distilleries, including no export duty, reduced licensing fees, lower tariffs, and a corporation tax cap. However, the spokesperson refrained from commenting on the Budget set to be presented by Ms. Reeves on November 26.