‘Frustration’ over supply comments from Keir Starmer
Distillers are reportedly ‘furious’ with British prime minister Sir Keir Starmer, who claimed there are concerns producers won’t be able to meet demand as tariffs were lowered in India, but said it was “a great problem to have”.
Speaking at the British Chambers of Commerce today (26 June), the prime minister said: “I’ve spoken to some of our whisky and gin distillers about the India deal. And they’ve told me that their concern now is whether they can produce enough to meet the demand. What a great problem to have.”
However, Karl Marson, director of Masons Gin, and the spokesperson for the UK Spirits Alliance, said he was “frustrated’ with the comments from the Labour leader, calling them “nonsense”.
“The prime minister’s nonsense narrative turns a blind eye to the very regulatory and tax barriers his own government continues to impose on the spirits sector,” Marson said. “The punishing tax burden we face at home makes it virtually impossible to invest in export growth.
“When 70% of a bottle of gin is swallowed by tax, small and medium distillers aren’t just struggling to grow – they’re fighting to survive.
“Without reform to our domestic tax regime, talk of trade deals is meaningless. The government can sign as many agreements as it likes, but they won’t touch the ground unless distillers are given the space to stand on it. Our sector deserves more than empty promises – it deserves a chance to compete.”
‘Hampering’ growth
In October 2024, the UK autumn budget announced another duty hike for the spirits industry, following the double-digit increase by the previous Conservative government.
In May this year, the UK and India celebrated a ‘landmark’ trade agreement, which will see import tariffs on gin and Scotch whisky from the UK to India initially cut from 150% to 75%, with plans to cut them to 40% within a decade.
The UK Spirits Alliance represents nearly 300 gin, vodka, rum and whisky producers.
Marson said on behalf of the alliance that the talking down of the sector by the government was hampering its ability to grow, invest and create jobs, as well as take advantage of new export opportunities.
The UK Spirits Alliance carried out a poll before the autumn budget, which showed one in four respondents know a distillery supplier that has gone out of business. A 2023 survey found 70% of distilleries in the UK fear not being able to invest in their businesses.
Related news
How UK spirits brands can tackle EU's route to market
