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UK Spirits Alliance: ‘Fair and stable duty system is crucial’

The newly-formed UK Spirits Alliance is urging spirits producers to write to their MPs calling for a duty freeze for the length of parliament and “reform of the duty system”.

The UK Spirits Alliance says a “fair and stable duty system is crucial”

Campaigning coalition the UK Spirits Alliance launched last month with the aim of “protecting and nurturing the growth of UK spirits”.

The current government position is for spirits duty to go up by retail price index (RPI) in this year’s Budget, according to the UK Spirits Alliance. The date for the 2019 Budget has not yet been scheduled.

The association has signed 35 spirits producers to its campaign including Silent Pool Gin and Didsbury Gin, as well as the British Distillers Alliance, which has almost 150 members.

A poll by Survation for the UK Spirits Alliance found that 84% of UK spirits producers questioned planned to increase production in the next 12 months, with 70% planning to increase exports.

The survey also found that 65% of the nation’s distillers have reported increased sales of spirits since chancellor Philip Hammond froze spirits duty in the 2018 autumn Budget. A total of 26% of respondents said sales had remained the same, while two distilleries reported a drop in sales.

Spirit duty rates in the UK have increased from £21.35 (US$26) per litre of pure alcohol in 2008 to £28.74 (US$35) in 2019, the UK Spirits Alliance said.

The UK spirits duty is 72%, the fourth-highest rate in Europe and one of the highest rates in the world. The tax on a typical £14 (US$17) bottle of gin or Scotch is £10.38 (US$12.63).

A spokesperson for the UK Spirits Alliance said: “From Inverness to Penderyn, spirits producers across the country are joining up to back the campaign to fix duty.

“It is clear that a fair and stable duty system is crucial to support an industry that is already creating new jobs and billions for the economy.

“Distillers want to continue investing and growing, which is good news for duty revenues and for the public finances.

“The new cabinet and chancellor have a fantastic opportunity to show they are committed to backing UK business success stories by freezing duty for the length of this parliament and reforming the system to provide the stability producers need.”

According to the UK Spirits Alliance, the number of companies in the spirits sector has increased from 100 in 2008 to 450 in 2017, while the number of UK distilleries has doubled in the last five years.

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