UK spirits duty: “Reverse this damage before it is too late”
Ryan Fazackerley of investment company Whisky 1901 has spoken out about alcohol duty ahead of the UK’s general election this week (4 July).
Current polls anticipate that the Conservative Party will lose a significant number of seats, making the Labour Party a majority government.
Neither of the party’s 2024 manifestos address the issue of alcohol duty, however the Conservative Party has stated it will maintain its Brexit Pubs Guarantee. The party has also pledged to launch a review of the nighttime economy in England.
Here, Fazackerley shares his thoughts with whoever forms the new government:
“With the UK election coming next week, it is time for the alcohol industry to come together to call for the next UK government to reverse the damage done in the recent autumn and spring budget announcements.
“Since the highest alcohol tax raise in 40 years was announced in August, the UK Treasury has lost more than £108 million (US$136m) in revenue from alcohol. This increase saw the UK alcohol duty rise to the highest in the G7 with almost 75% of the cost of a bottle of Scotch being claimed for alcohol tax.
“It is clear that these tax raises are damaging the UK’s spirits industry, which accounts for a third of alcohol sales in restaurants and pubs within the UK. The current system is damaging the UK economy and setting us behind our European peers.
“We are calling for the next UK government to reverse this damage before it is too late. The UK spirits taxation must align with the average European duty tax for UK businesses to build back up after these disastrous taxation raises.
“With producers and retailers already battling high inflation costs and increasing supply chain charges, more needs to be done to support the spirits industry, particularly with potential new regional changes set to appear in Scotland this year.
“After already having stricter alcohol laws in Scotland, the impending rise of minimum unit pricing to 65p from September will put further pressure on an already strained whisky and spirits industry.
“Rising taxes and alcohol laws don’t just affect producers or consumers of the spirit, but also impact the growing cask investment market – those wishing to explore alternatives to traditional savings accounts and stocks and shares.”
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