UK Spirits Alliance Warns New Duty Hike Will Send Pubs ‘Back to The Uninspiring Days of the 80s’

Four hundred businesses wrote an open letter in conjunction with the U.K. Spirits Alliance to ask the treasury chancellor, Jeremy Hunt, to put a freeze on the duty increase, citing irrevocable consequences to the British spirits industry. (Photo: Sven Hoppe/picture-alliance/dpa/AP Images)

On Monday, the Express reported that the U.K. Spirits Alliance (UKSA) is calling for a tax freeze on spirits out of fear that the British government might raise alcohol duties once again. The effects of this duty may yield lower production outputs as distillers struggle to compensate.

Over 400 spirits businesses in conjunction with the UKSA wrote to Treasury Chancellor Jeremy Hunt in an open letter that the consequences from the duty hike would issue dire repercussions.

A 10.1% increase was introduced in August, and according to express, there exists a “fear there will be two tax rises in the space of six months as the Chancellor’s Autumn Statement approaches.”

During a survey offered by the UKSA, 61% of participating distillers claimed they would have to cut their output to deal with the financial strain.

The Spirits Business reported that the letter urged the Chancellor to approach the issue fairly, as the current initiative prioritizes freezing duties on draft beers and ciders.

“The Brexit Pubs Guarantee not only does little to support pubs, bars and restaurants but also penalizes adult customers who might prefer a gin and tonic, or a Spritz over a beer or a cider,” the letter claimed.

According to The Spirits Business, a survey conducted on distillers claimed that 54% of the participants had not recovered or only partially recovered to pre-pandemic revenue.

Another 40% of businesses within the distilling sector cited a decrease in sales, and half of the distillers who participated in the survey claim that the higher tax rate will hit their hiring rates.

One owner of two venues, Neema Rai, claimed the duty could fundamentally alter the U.K.’s drinking culture and set it back decades.

She claimed the initiative would, “kill off the renaissance in British spirits and send pubs and bars back to the uninspiring days of the ’80s.”

The duty hike has sent panic rippling throughout the spirits industry within the United Kingdom, and The Scotch Whisky Association wrote to the Chancellor in early November.

In a letter, the SWA condemned the treasury’s actions, and claimed a second duty rise would be “self-defeating,” and “the final nail in the coffin for some British drinks businesses.”

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