Inquiry to probe UK spirits tax policy
A new cross-party group of members of Parliament have launched an inquiry into the impact of the UK’s alcohol excise duty system and is calling for evidence from the spirits and hospitality sectors.
The All-Party Parliamentary Group (APPG) for UK Spirits is urging distillers, hospitality operators, trade bodies, and suppliers across the UK to submit their views and experiences to help inform future policy.
Established in July 2025, the APPG for UK Spirits is chaired by Labour MP Carolyn Harris.
The group was established to ‘champion the UK’s world-leading spirits industry and promote regulatory and fiscal frameworks that allow the sector to thrive’.
The APPG is seeking evidence from businesses of all sizes, including large and small distilleries, bars, pubs and nightclubs. The group is aiming to find out how tax rates have affected the operations and future growth of businesses.
In August 2023, the UK government under Conservative leadership introduced a 10.1% rise on spirits tax – the largest in nearly 50 years. As part of last year’s autumn budget, chancellor Rachel Reeves and the Labour government hiked up duty again by 3.65% in line with inflation.
“The UK’s spirits sector is an engine for jobs, exports, and innovation, but successive increases in excise duty are putting its future at risk,” said Harris.
“Through this inquiry, we want to give the industry a platform to speak directly to Parliament. Whether you’re a distiller, bar owner, or trade organisation, your insight will help shape a better, more sustainable approach to alcohol duty.”
The inquiry will examine the structure, application, and outcomes of the excise duty regime for spirits, focusing on the economic impact on UK spirits producers and how it has affected competitiveness, investment, and exports.
It will also explore the effect on jobs, innovation, and regional economic development, the broader impact on hospitality, and how it compares with taxes on other alcoholic beverages and international duty regimes.
The call for evidence is open from 23 July until midnight on 22 August 2025. Businesses and individuals can submit responses online here.
A short publication featuring the main findings of the inquiry, along with potential recommendations, will be published in early September.
The APPG plans to submit the publication to the Treasury to help inform the government’s plans ahead of the autumn statement.
A recent survey by the Scotch Whisky Association revealed Scotch companies are planning to invest outside of the UK due to the nation’s high spirits tax.
Last year, the APPG for Hospitality and Tourism launched an inquiry to address staff shortages in the industry.
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