UK distillers demand duty freeze
A group of British distillers will descend on Westminster today (2 September) in an attempt to stop the government from increasing alcohol duty at the autumn budget.
The All-Party Parliamentary Group (APPG) on UK spirits, in partnership with the UK Spirits Alliance, will host a showcase at the Houses of Parliament.
The spring budget made no mention of spirits or hospitality. However, the 2024 autumn budget saw alcohol duty rise in line with the Retail Price Index (RPI) from February 2025. This represented a 3.65% increase, following the historic 10.1% rise imposed by the previous government.
Carolyn Harris MP, chair of the APPG, said: “We know that distillers across the country are having a really challenging time, and if we could do one single thing to help, it would be a proper duty freeze.
“That means a real freeze, and not an increase dressed up as a ‘freeze in line with inflation’.
“I have been hearing directly from distilleries and the businesses that rely on them – including pubs – in the past few weeks. This is a sector with huge growth and export potential; rather than stifle it, we need to create the conditions to let it thrive.”
The meeting at the Houses of Parliament will allow distillers to display their products and make their case to ministers, MPs and peers.
The autumn budget is expected to be announced in early November, although no date has yet been confirmed.
The founder of Brighton Gin, Kathy Caton, said: “As distillers, we must make sure that our voices are heard.
“Brighton Gin isn’t just a distillery; we help to grow the local economy, create skilled jobs, drive tourism and lead in sustainability while building a global reputation for quality.
“However, successive duty increases have not only led to our artisanal spirits being priced out of local pubs and restaurants, but they’re stifling potential growth.
“We need to see the government supporting what is one of the most innovative and exciting sectors in the hospitality industry.”
Distillers are ‘profit generators’
A recent call for evidence by the APPG highlighted that excise duty is the biggest challenge faced by the spirits sector.
Ben and Kate Marston, co-founders of Puddingstone Distillery in Hertfordshire, said: “British spirits are a phenomenal success story. We’re tourism magnets, job creators, and profit generators for hospitality.
“Award-winning British distilleries like Puddingstone support 446,000 jobs and pump £13 billion (US$17.4bn) into the economy, yet the Treasury’s decision to penalise great British craftsmanship continually puts this growth at risk.
“As a local producer and small business owner, we have witnessed firsthand how punitive spirits duty rates have impacted our business and the entire supply chain – from the farmers growing our botanicals to the skilled craftspeople in our distillery.
“With the right support from the government, we can continue to be ambassadors for British excellence both at home and internationally. It’s time for fair taxation that backs innovation, not stifles it.”
Other challenges faced by the spirits sector include the increase in employers’ National Insurance contributions and the hike in minimum wage.
It was recently revealed that hospitality has been the industry hit hardest by these measures, with the sector having lost 84,000 jobs since October’s budget.
Amy Conyard, co-founder of Giraffe Distillers, said: “Spirits are the backbone of the UK hospitality industry. We have the ability to produce tens of thousands of litres of spirits every day.
“These spirits are sold in pubs, bars and restaurants. Two-thirds of landlords say that spirits generate more profit for them than beer.
“If the government is serious about saving pubs, then it needs to support UK spirits.”
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